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?
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).