BRA - incentive type figure

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"?

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

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

Ontario? An agent can't (legally) increase their % based on how much a home sells for, only decrease. Sliding commission is only legal in Ontario to decrease commission: https://www.reco.on.ca/registrars-bulle ... ions-fees/

fmrrecoemployee wrote: ↑ Ontario? An agent can't (legally) increase their % based on how much a home sells for, only decrease. Sliding commission is only legal in Ontario to decrease commission: https://www.reco.on.ca/registrars-bulle ... ions-fees/

interesting, wouldn't that encourage selling agent, to double dip then?

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?