What is co-broke? “Co-broking” happens when two real estate agents/Realtors work together selling a home listed for sale in the MLS®; One agent is representing the buyer (referred to as selling agent), and the other for the seller (listing agent). The Listing broker is obligated to pay compensation (they advertise in the MLS) to the Selling Agent for providing the buyer involved in the transaction. The commission your listing Realtor charges you are split* between the two involved real estate agent’s offices. *Not always 50/50.
Co-Broke Is Not Always Split 50/50
There is no law that says a Realtor’s co-broke must be equally split (50/50). In fact, the real estate broker you hire can split the co-broke amount any way they want and often time without your knowledge or consent. That’s why it is imperative to always to ask upfront (before you list) what amount they will spit with the Selling Agent and then verify that the amount quoted is in writing within their listing agreement.
Nothing Left To The Imagination
BETTER BUY REALTY puts everything in writing. Our listing agreement is easy to read, understand, and all terms (including commission and co-broke) are clearly spelled out. We leave nothing to the imagination and there will be no surprises at closing.
“… If an agent insinuates (says) that we pay only 2% co-broke, that would not be true. We co-broke out at 2.5% or more. We pay other agents more than we earn – We are extremely fair with compensation.”– Jeff Sawyer, Broker
BETTER BUY REALTY (Pays More) Than They Earn
BETTER BUY REALTY pays the lion-share of our commission (from the 4%) with the Selling Agent; We pay 2.5%; We do not split 50/50 – We pay more! The Selling Agent (the agent providing the buyer) gets more than us. BETTER BUY receives the remainder; 1.5% (2.5 + 1.5 = 4%).
Moreover, it’s important to note, just about every Real Estate office in Flagler County has or is currently offering 2.5% as their co-broke to other real estate agents. In fact, 2.5% co-broke is so widespread (over 60% of all listings) it can be considered a standard expectation in today’s compensation.