What Does Co-Broking In Real Estate Actually Mean?
Real estate Co-broking is when two property agents, or real estate agencies share the property transaction. This means they split the commission with another property agent. Often in real estate, the seller’s agent will have to deal with the buyer’s or renter’s agent, and so when there are multiple real estate agents in the transaction the splitting of commission is called co-broking.
But If the buyer does not have a separate agent and goes directly to the seller’s agent, then the seller’s agent will represent both parties and collect the entire commission.
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Why some property agents don’t want to co-broke?
The main reason for this is some property agent want the whole commission for themselves, and so refuse to share the commission with another property agents even if they have a ready and willing buyer.
Real estate agents sometimes feel they don’t need to work with other agents is because they think they can find both buyer and seller. But the reality is, that they just want to take all of the commission for themselves, and the best way to do that is to find both the buyer and the sellers.
But in reality it is of best interest of the sellers, in order to get the highest and best price in the shortest amount of time for their property. Their property agent should be willing to work with other agents, exposing their property to many more potential buyers. Many real estate agents are working with home buyers all day every day, and they have a “pool” of buyers looking for specific kinds of property. By closing their seller client off to these potential pools of home buyers, the agent refusing to co-broke is not only doing a dis-service to their sellers, but also potential losing the sale if the seller decides to use another agent.
Why you should only work with real estate agents who co-broke
You have spent a lot of time and money acquiring the property you want to sell or rent out. So you will want the highest and best offer for your property, and as quickly as possible. When property agents refuse to work with others and share commission, they are doing a big disservice to their sellers. When property agents agree to list and sell a property, they have the responsibility to use any means possible to get it sold or rented out.
RealestateMY is working to bring co-brokering system together so it’s easier for property agents to find sellers agents who have listings and are willing to co-broke. This system or MLS for co-brokering is the way of the future. If a property agent is I’m getting ready to list a property for sale with Reapfield, but they are not going to allow IQI or any of the other real estate companies to bring buyers to the table, then why would a actually list a property for sale with them? It’s not going to get the proper exposure, but most property sellers don’t know because these property agents don’t disclose this information to them.
Do All Seller Agents Have to Co-Broke?
Co-broking is not compulsory, but seller agents must respect a buyer’s right to choose to work with other property agents of his or her choice. However, a seller agent is not obligated to split commission with the buyer’s agent unless there is a pre-existing co-broking agreement in place.
Fortunately for buyers’ agents, members of RealestateMY MLS will automatically have a co-brokerage agreement in place which applies to all members.
Why real estate negotiators should co-broke?
For property sellers, the key to getting the best offer on a property is to attract the most number of buyers possible. Many buyers are represented by buyer’s agents, and the buyer’s agents will be motivated to bring their clients to a listing that pays a them a cut of the commission.
Remember, buyers generally don’t pay a fee to their agent, so the buyer’s agent’s livelihood is based on the commission that is going to be split with the seller agent. If a sellers agent doesn’t co-broke, it means that buyer’s agent will not tell their buyer about this listing, and thereby it will greatly reduce the number of buyers for the property. Less buyers is, of course, detrimental to the successful sale of a property.
Conclusion
Always work with property agents that you trust. Whether you are on the buyer side or seller side, establish strong relationships with property agents that are going to best serve your interests. In any real estate transaction, the client should always be number one. Don’t work with property agents who are more concerned with their profit than yours. Carefully read any property agreement you may sign as a seller and ensure that your property is being appropriately marketed. Join our official Telegram Cobroking Group below:
