Real Estate

BRA - incentive type figure

  • Last Updated:
  • Mar 8th, 2022 11:37 am
[OP]
Sr. Member
Sep 13, 2007
676 posts
225 upvotes
Toronto

BRA - incentive type figure

Since BRAs are signed to a real estate brokerage firm,
the % goes to the firm.

For realtors, can you offer them a bonus, if you know the market and tell them, if you hit YYY number market, I'll give you a Z amount bonus?

The reason is because a real estate firm, takes 1.5% as the selling agent, while offering 2.5% to the buying agent.

I think that type of disparity may lead to double dipping, and seller getting a lower offer.

What do you think?
6 replies
Deal Fanatic
Jul 3, 2011
6517 posts
3780 upvotes
Thornhill
noobienoob wrote: Since BRAs are signed to a real estate brokerage firm,
the % goes to the firm.

For realtors, can you offer them a bonus, if you know the market and tell them, if you hit YYY number market, I'll give you a Z amount bonus?

The reason is because a real estate firm, takes 1.5% as the selling agent, while offering 2.5% to the buying agent.

I think that type of disparity may lead to double dipping, and seller getting a lower offer.

What do you think?
Who is them and who is the you in "if you hit"?
[OP]
Sr. Member
Sep 13, 2007
676 posts
225 upvotes
Toronto
them - realtors
you - me

can i offer the direct selling agent bonus, say a few k, if they hit a target.

Because the way i see they structure the commission, 1.5% for them and 2.5% to buying agent, they be more incentive to steer the house to their own buyers, to get the full 4%

i'm still not sure how they manage to get a good price for the house that they sold
Deal Fanatic
Jul 3, 2011
6517 posts
3780 upvotes
Thornhill
Because the terminology is often misunderstood I'd like to clarify that the industry refers to the buyer's agent as the selling agent. It's weird. I take it when you say the selling agent you mean the listing agent.

If that's the case, you can offer, they cannot accept. But since the buyer's agent is paid by the listing brokerage (when not a fsbo listing), the listing brokerage can offer a bonus for a sale within X days to the buyer's agent but they cannot offer a bonus or increased commission on price differential.

noobienoob wrote: them - realtors
you - me

can i offer the direct selling agent bonus, say a few k, if they hit a target.

Because the way i see they structure the commission, 1.5% for them and 2.5% to buying agent, they be more incentive to steer the house to their own buyers, to get the full 4%

i'm still not sure how they manage to get a good price for the house that they sold
Deal Addict
Jan 11, 2004
1529 posts
396 upvotes
Yes. When an agent represents both sides they can steer away higher offers and collect commissions from both sides. And then you want to throw in a couple of thousands on top?

Of course this is frown upon but what is the penalty? A couple of thousands?

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