Should You Increase Commission to Sell Your Property?

Posted by Jim Kimmons, Broker/Owner • March 31, 2008 • Printer-friendly

Few would argue that the Taos real estate market has followed the rest of the nation into a slump. True, it isn't as deep, and I don't think it will last as long as other areas. However, it is definitely here. Prices are softening, though not dramatically. Number of sales is definitely down considerably if compared to a couple of years ago.

When listing a property, the discussion might turn to offering a higher than normal commission to buyer brokers to help get it sold faster. I'll set aside my dislike of this concept, considering that it seems to indicate that a buyer agent will somehow steer or convince a buyer to plunk down hundreds of thousands of dollars just to get more commission into their pocket. I'm not saying they might not try to do that...just that I don't think they can push their buyers around in that way.

However, if you believe that it could help sell your home or land faster, read the Business Week article that addresses this very subject. It would seem that delivering a higher payday for the buyer broker might be useless, as they would probably have delivered the buyer anyway. Sellers were buyers once. They aren't stupid or gullible. They won't buy a home just because an agent or broker talks it up. In fact, many would look askance at the broker when they find out about the increased compensation for that particular listing.

There is no shortcut to selling a property. It's all about value and price. If the value isn't there for the price, a higher payday for the buyer broker isn't likely to change the situation much. You'd be far better served to put that extra commission money into improvements that will make the property more appealing, thus increasing its value in the eyes of prospective buyers.