“Mexico SMART Realty Always Offers A 3.5% Co-Broke”

Co-broke
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.

Here’s a good Lipton test for you to try:

Ask a Realtor/Agent with a qualified buyer, which home they would push more; One that pays them 2% or one that pays them 3.5%?

Here’s my motto, “If I want to cut my pay (as low as 1%) that’s one thing, but I would never cut the pay of my colleagues.” That’s why I always co-broke a full 3.5%. 

What Does Co-Broke Mean To Me?

Co-broke is extremely important! Realtors that list their properties in the MLS must offer a co-broke; It’s in the bylaws However and maybe more importantly; without a co-broke there would no incentive for an agent (that works on straight commission) to bring a paying buyer to your home. In other words, a co-broke is the agent’s guaranteed paycheck. Offering guaranteed pay in-exchange for a buyer is what makes the Multiple Listing Service so powerful and effective. In fact, there is not single more effective way to sell your home than marketing it within the Multiple Listing Service!

Here’s how it works;

A listing agent charges the seller a listing fee (from that fee) a portion of it is split and offered in the MLS as a co-broke; this is the incentive for a Realtor working with buyer to bring “them” to your home. Simply put; When a Realtor searches for properties for (their) buyers they use the MLS, on the bottom of each listing their pay is disclosed. Immediately the agent knows what they will get compensated.

Common sense may conclude that is extremely important that the co-broke offered by your listing agent to be as attractive as possible to other Realtors; especially if your agent does not currently have a buyer for your home.

Since real estate agents depend on commission exclusively as their livelihood; offering a low co-broke may not help encourage and often times will discourage their buyers on purchasing a particular property. I cannot express this enough; If your agent lowers their commission by 1 or 2 percent they BETTER NOT lower what they usually as a co-broke.