In response to Ms. May & Ms. Logan regarding the “dark grey area” of bonuses

Editor,

In response to Ms. Logan. The fact is that if a listing agent/broker and seller feels that offering a bonus will get more movement on the listing, it is marketing. The reason sellers use us is because we have access to the largest number of buyers in the marketplace. The reason buyers use us is because we have access to the largest inventory in the marketplace.

Whether it’s offered as a cash bonus or in the form of a higher split, this is not going to sway an agent who bases sales on good principles – the good or right principle being finding a property that best suits the buyer.

For instance, if an agent offers a $ 5,000 selling bonus the selling agent could rebate this money back to the buyer if he had a problem accepting this form of compensation for doing his job – bringing a qualified, no frills buyer that wants to make a purchase.

Whether it is posted as a cash bonus or instead they make the co-broke a higher percent commission, the outcome is the same.

It is also an anti-trust issue. If you feel every agent should be offering the same commission, or I would rather say – compensation plan – then you are on the brink of the ever dangerous anti-trust issue which is plaguing NAR at this very moment.

The answer is simple – If you show properties based on buyers’ needs, wants and desires, then it won’t matter if another agent offers you $100 or 20 percent as compensation, either as cash or percentages.

Remember, if a seller wants to sell and wants to offer a large cash incentive to get someone to buy – remember that thing called the listing contract – we can’t offer that compensation without their permission - that is their right! It is up to each agent to do what is right for the buyer represented by them – and if you happen to be the agent who gets the bonus, so be it.

BUT – if your principles are such that you don’t show that listing because of the bonus, then you have committed an error by not doing what could have possibly been right for that buyer.

So... If it bothers you, do what I said earlier – rebate the bonus – just make sure the lender will allow it; and if the lender will not allow it, take the bonus and donate it to Habitat for Humanity!

Don Johnson

Global Realty Marketing Inc.

Orlando

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