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Who Else Lists a Property With Higher Commission to Attract All Area Agents?

Armen Hareyan's picture
Realtor Commission Rate

Today I was surfing ActiveRain and saw this discussion on Real Estate listing rates and wanted to share it with Huliq readers. Rob Thomas, a real estate agent from Bristol, TN is asking fellow realtors if they ever list a property with a higher than customary commission rate in order to attract attention from all area agents.Here is what responding agents say about this.

Nina Hollander of RE/MAX in Charlotte, NC
I haven't really found that this or agent bonuses really work. It sends the wrong signal for agents to show a home--they do, but they still can't make their client buy a home just because the compensation is higher. I recommend to my sellers that they focus on the buyer and increase incentives to buyers to get traffic.

Tony and Suzanne Marriott, Associate Brokers from Scottsdale, AZ
No. In my opinion the Buyer:

  1. Doesn't know the co-broke commission when surfing the web for properties they want to see
  2. Won't buy something just because their buyer agent shows it due to the co-broke amount.
  3. Could care less about the co-broke unless they are (a) receiving a rebate based on the co-broke OR (b) asked to pay any "difference" in a Buyer Broker Agreement.

Much to the annoyance of some Buyer agents - there are a variety of offered co-brokes in our area - so they either have to step up and use a Buyer Broker Agreement or accept what's being offered.

Troy Erickson responds by saying, "I would agree that is the way it should be. However, I have spoken to many agents who actually search the MLS for listings with higher commissions, and then select those homes to show their clients. That is what I call greed, and it does not serve their buyer client as far as I am concerned."

Sandy Padula and Norm Padula of San Diego, CA
We have done that and generally, it does not seem to make a difference in s Sellers' Market. Buyers' Market should make a huge difference.

Gary Coles a realtor from Las Vegas, NV
Yes, I began when I took over a major REO account. They had not been selling properties and a new REO manager took over. She raised the commissions and had me offer more to Buyers agents. The properties suddenly had much more activity and sold quickly.

I have done the same with my own properties and with difficult to sell properties. It works.

Joe Petrowsky a Mortgage Consultant from Manchester, CT
Good morning Rob. I wouldn't, I've going to give my client, all of them the same effort. If an agents that has a prospective buyer and chooses not to show the property because of they don't belong in the business.

Praful Thakkar a Keller Williams realtor from Andover, MA
It surely is a good idea to attract agent population. However, if the higher co-broke compensation means higher list price, buyers will not be much interested in it.

Spirit Messingham of Tierra Antigua Realty from Tucson, AZ
Do you mean, commission paid out to the buyers agent? I do not offer more. The reason why? The days of the agent or Realtor "controlling" the listings are just about over. With sites like and others, most of the buyers I work with are looking at these sites already. Many times, they have already identified some houses they like or even want to make an offer on before they have contacted me. If a listing agent pays me more, that is great, I will take it but I would show the property regardless. Course, I also show clients the short sales and REO that pay out less than the commission I normally make. I disclose that it is less and I do not charge the buyers the difference.

Debbie Reynolds a real estate agents from Clarksville, TN
Yes, had a really challenging property and asked for double the rate, got it and it sold in 10 days because of of my aggressive marketing.

Ron and Alexandra Seigel from Carpinteria, CA
Yes, it does, and it has worked for us in the worst of times, as well as for my clients. One of our clients asked and received an 8% commission, which made it that much more attractive to other agents, and it did sell. It was a very large estate on the water.

Troy Erickson a realtor from Chandler, AZ
Rob - I have never done it, but I know agents who have, because it works. I know agents who specifically perform their MLS search based on the co-broke commission. Then they only show those homes to their client, or try to sell those homes with the higher commission to their buyer client so they can make more money.

Annette Lawrence of ReMax Realtec Group - Palm Harbor, FL
Much like Gary Coles (International Referrals) experience, I have observed a higher than customary compensation gets results.

Be aware, a buyer looking for a 3/3/2 will not be shown real estate that does not meet their criteria. No One is attempting to sell a buyer on real estate that does not meet their requirements.

I am fine if the majorly of agents are oblivious to compensation offered, however I PREFER to work with real estate professionals who are operating with full comprehension.

The temptation is to believe higher than customary compensation gets results driven by greed, but that is WRONG. The reality is, those agents working with FULL COMPREHENSION understand they have been equipped to better overcome some of the insecurities or concerns of the buyer. IN essence, they now have more tools of relevance with which to work.

Such strategies empower the enlighten buyer agent, if they are operating with full comprehension.

Barbara Todaro of Franklin, MA
That does draw attention and it's sometimes a signal that the property is not an easy sell. That leads to a lower offer if desperate homeowners are paying a higher commission. They may not be financially desperate, but they may need a quick closing and the property is an odd one.


Good question Tom. I will look forward to hearing from other real estate agents on your question. May cover a story on the subject too.

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