Are you unknowingly violating Anti Trust laws? Or are you doing it on purpose? If so, you need to get your head out of the sand before it's too late. "Broker Bryant, what the heck are you talking about?" Well, thanks for asking. I was reading my new Florida Real Estate magazine today and read something that I had actually been thinking about recently. There was an article about Anti-Trust violations and how to avoid them. The normal things were discussed: Don't talk about commissions, don't conspire to not show another companies listings because they charge a smaller fee etc. etc...
Anyway, they also mentioned co-broke compensation in the MLS. In our local MLS we have four fields that require a commission amount. As you know, this is an offer of compensation to other Brokers that show and sell our listings. Our MLS has: Buyer Agent...Transaction Broker.....Sub Agent....and Non-representative. First, we don't have sub agency in Florida so this field is always 0. But, what I have been noticing is that REALTORS® are putting different amounts in the remaining three fields. Why? Does my relationship with the Buyer really make a difference to you? If my Buyer purchases your listing shouldn't I be compensated the same regardless of how I choose to work with my Buyers?
Now, as a listing Broker, I always offer the same compensation to whoever sells my listing. I don't care what your agency or non-agency relationship is with your Buyer. If you are licensed and sell my listing, then you get paid. But what Brokers, in my area, are doing, is reducing the amount that they will pay a non-representative. Folks, I'm here to tell you, that if you are doing this you are breaking Anti Trust laws, in my opinion. The purpose for these reduced offerings is to avoid having to pay an Alternative Business Model(ABM) a full co-broke commission. Or am I missing something? Does anyone have an explanation for offering a lower amount that doesn't include "Well, I may have to do more work" or "They only offer us x percent so we are doing the same".
Florida does not have minimum service laws. Nor should they. As I wrote in my previous post, ALL ABMs have just as much right, as I do, to conduct their business, their way.
By reducing the amount of their co-broke you are harming the Seller and you are discriminating against the way someone chooses to handle their business.. Did you ask the Seller about this? Did you explain to them that it will eliminate some REALTORS® from showing their property?
So my advice is, don't do it. Make the compensation the same across the board. You are treading on very dangerous ground by having variable commissions in your co-broke offerings. Have you thought about this? Does this happen in your area? Am I wrong?
***Broker Bryant Image compliments of Doreen McPherson. Thanks Doreen!
If you haven't entered the Broker Bryant Image contest. There's still time. The contest ends on June 15th.
EDITED: TO ALL: THIS POST IS MY OPINION AND WAS POSTED TO TRY AND GET AN UNDERSTANDING ON THIS ISSUE. ALL STATE LAWS VARY AND THIS WAS WRITTEN FROM MY FLORIDA PERSPECTIVE.
All content copyright © 2007 - Broker Bryant Real Estate Ramblings