Sellers Beware! "In-House" Bonuses Explained
Sell Your Home For The Highest Price.
The truth behind "in-house" commission bonuses in Westchester County
You Should Know: Many real estate companies pay the agent who is "representing" you; more commission to sell your home to one of their company’s buyers versus one from another company. This practice is often referred to as an "in-house bonus".
Why You Need to Know: In other words, agents are discouraged from having a buyer from outside their company reach an agreement to purchase your home. A buyer from outside their company may be willing to pay you a higher price for your home, but they are not given the opportunity to do so because the agent would be paid less commission by their company.
Their company’s goal with such a policy is to collect the entire commission and not share it with anyone. Companies that claim they have market share and others that offer discounted fees are notorious for having this policy as well.
>> In the end, you may unknowingly sell your home for less money.
A Look At The Numbers:
What To Do: You may be interviewing agents from other companies. They typically will not mention they are paid a higher commission (in-house bonus) by their company for representing the interests of their company above yours. By not informing you of this policy they are violating their fiduciary responsibility to you. We strongly recommend... asking any potential seller agent about his or her company's "in-house bonus" structure.
We Are Different! We believe home sellers deserve every opportunity to sell their home to a potential buyer for the highest price and best terms regardless of which firm the buyer chooses to represent them. We do not offer any type of "in-house bonus" financial incentives to our agents. Our agents always work in the best interest of our clients.
* Seller Agency as defined by New York State - A seller’s agent is an agent who is engaged by a seller to represent the seller’s interests. The seller’s agent does this by securing a buyer for the seller’s home at a price and on terms acceptable to the seller. A seller’s agent has, without limitation, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A seller’s agent does not represent the interests of the buyer. The obligations of a seller’s agent are also subject to any specific provisions set forth in an agreement between the agent and the seller. In dealings with the buyer, a seller’s agent should (a) exercise reasonable skill and care in performance of the agent’s duties; (b) deal honestly, fairly and in good faith; and (c) disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law.
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We will always put your interest first, above our own. That is what you are hiring us to do, it's also the law.