Does anyone know the definition of Co-Brokering?
When brokers are working on a ‘co-broke’ basis, they are sharing exclusive listings with each other. In a co-broke transaction, one broker will represent the buyer or renter, while the other will represent the owner of the property. The commission is usually split 50/50.
Agents and brokers use co-brokering as a way to give their clients (sellers) listing exposure to as many other agents as possible. In the old days firms would have “exclusive” listings, which they would NOT share with other agencies and hold close to their vest so they could sell it themselves and keep both sides of the commission.
While the defenition of “exclusive” has changed over the years, many of the Hamptons agencies still use “exclusive” signs as a way of marking their territory, in hope that the potentialbuyers will think that they cannot get information on the property unless they call the “exclusive” agent. For the most part, that is not true, except in the cases of those agents/agencies that are not fulfilling their fiduciary responsibility to their sellers, and not sharing these listings with other agencies in the market.
Who would do such a thing? Why wouldn’t they want to get these listings out to as many agents as possible? It’s only one of two things:
1- Greed – the agent hopes to sell it themselves, therefore not having to share the commission 50/50 with the co-brokering agencies, or
2- Restraint of Trade – either that agent themselves or their broker is instructing them to restrict co-broking their listings to other brokerages in an effort to put those other brokerages out of business.
So, ask your broker/agent: “are you co-broking my home with ALL other agencies in the market?”
If not, why not?