Opinions on Broker Incentives/Bonuses

[John Newland]

I'm wondering what other investors, sellers, and even agents think of offering a bonus or incentive to a broker/agent when selling a property. I have a few investors who insist on offering incentives ranging from $1000-$5000 to try and drive brokers and their buyer into their properties.

Personally I do not believe in this simply because I feel a property usually sells itself to the buyers. I also think a broker/agent is more willing to look out for their buyer's best interests than their own, even if it means passing up a juicy bonus, just to keep their buyer happy and get referrals and future business from them. In my opinion, the seller is just giving up money and negotiation room unneccessarily; the property would probably have sold on its own merits to the same buyers without a bonus in place. I have listed and sold properties in good time just fine without bonuses, however, some people swear by them. Maybe I have it all wrong.

I'd like to hear what others think about offering selling bonuses and what the experiences have been.