Hi folks. I read a blog post from Tricia Hoffman titled "Risking Your Client's Happiness Over $200."
Basically it's about an agent contacting the listing agent to ask for a higher co-broke. One of the commenters, Joetta #44 wrote:
- "I wonder how all these listing agents who said the agent had a perfect right to ask for a better split would feel if they got an email from a buyers' agent asking for a higher commission than what is shown in the MLS."
Ok. I'll bite :) I've been primarily a listing agent for 18 years. I do not split commissions 50/50. I take a larger chunk on the listing side and always have. Over the years I have had many agents request the co-broke be changed. It doesn't bother me in the least that they ask. As long as they are asking PRIOR to accepting the co-broke being offered. This is as per our CoE.
- Standard of Practice 3-1 REALTORS®, acting as exclusive agents or brokers of sellers/ landlords, establish the terms and conditions of offers to cooperate. Unless expressly indicated in offers to cooperate, cooperating brokers may not assume that the offer of cooperation includes an offer of compensation. Terms of compensation, if any, shall be ascertained by cooperating brokers before beginning efforts to accept the offer of cooperation. (Amended 1/99)
Sometimes I agree to an increase and sometimes I don't. But what I always do is help the agent understand how to get paid when working as a buyer's agent. It's simple. Have a written agreement with your buyer/tenant outlining how you work and how you expect to be paid. That way the buyer can pay you extra commission if you feel you need it.
My guess is that as we move forward towards lenders and 3rd party vendors stepping between agents and their clients it will be even more important to know how to get paid for buyer agents.
Buyer agents should NEVER have to rely on the listing agent to get them paid. The co-broke being offered should be a supplement to your "already negotiated compensation" with your buyer.
If all agents knew how to get paid these types of discussions would become obsolete.
****Edited on 1-24-2013 to add Standard pf Practice 3-1