Test your knowledge of today’s real estate market, and answer the following question:

Does dangling a fatter commission to the Buyer’s agent — what Realtors call the “listing payout” — result in a faster sale, for more money?

A. No.
B. Yes.
C. Sometimes
D. It depends on how much.

Answer:  “D.” (credit also given for “C.”)

Anecdotally, at least, it appears that juicing the standard 2.7% payout does result in quicker sales, for better prices.

But only up to a point.

Once the bonus gets too big — defined as more than one-third or so higher than normal — it appears to becomes counter-productive.

What could account for that?

My hunch:  a conspicuously large Realtor bonus suggests that there’s something wrong with the property (and presumably, the Seller thinks a huge bonus will induce the Buyer’s agent to gloss over it).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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