How to use Incentives to Motivate Buyers and Sellers

Rather the market is hot, cold, or in between buyers and sellers need to be motivated or else they tend to procrastinate and wait until it’s too late. Meanwhile, your commission check hangs in the balance just waiting to be freed. Here’s some tips on how to instigate initiative and urge your clients to take action sooner not later:

#1 – Discounts

People love to spend money but they HATE to lose it. When you offer discounts on your commission or other fees this encourages your prospective clients to take action because they don’t want to miss out on the discount. This discount incentive creates the impression that if they don’t take advantage NOW they could be “PAYING TOO MUCH”. Now who in their right mind wants to do something silly like that?

#2 – Contests

Obviously you’ll need to check with the laws and regulations in your local area but I can tell you that contests when done right move properties. You could offer something small like a new flat screen television or you could offer something large like a 5 day cruise to the Bahamas. Typically the prospective buyers or “contestants” enter the contest when they visit the open house or view the home with their agent. They submit their contact info and then they’re entered. This strategy is effective because it increases the number of showings and experienced agents know the more showings you get the higher the chances of getting an offer. Also, you get to keep all the leads from all the other people who entered the contest but did not win or buy the house.  You could then contact them in the future especially when you get a new listing in the same area.  

#3 – Referrals

The easiest way to integrate incentives into your business is to have a standing offer to licensed agents who sends you a referral. The best way to share this offer is by using your website where a buyer’s agent will usually visit to contact you regarding one of your listings. Join the Elite – Take a Free test drive If you advertise your offer of a $500 BONUS to any agent that closes on any listing in 40 days or less then now you’ve just provided an incentive to the agent to make sure they don’t drag their feet on getting to the closing table.