Part of being a good real estate practitioner is to KNOW YOUR RULES. While I sold Albuquerque real estate for years without having served on a committee or visiting a Board meeting, I was probably walking a tight rope when it came to properly practicing real estate.
Some mistakes that I see every day are just plain honest mistakes. Some are really quite amazing.
The one that is on the top of my mind today is VARIABLE RATE COMMISSION in the MLS menu.
It seems the definition lies more in what it ISN'T than what it is....what is ISN'T is "this compensation I'm offering you, selling broker, could change if my seller/the bank/or a third party decides that it is going to"....NOT!
What this rule specifically means is that the listing broker has a listing agreement with their SELLER (HEY, the owner of the property) that if the listing broker procures the buyer and sells the property, the seller is at an advantage with a change in the commission they are PAYING THEIR LISTING BROKER...that's all...very simple...
The purpose of this rule? Scenario: You as a selling broker are writing an offer on the property at 123 Main Street, and listing broker informs you that they are also writing an offer...you read the MLS menu that states "VARIABLE COMMISSION/YES" and you know at that point that the seller may have a financial advantage to taking an offer written by their own listing broker.
I know, rules may seem just like excess baggage -
Rules are kinda fun when you know them.
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