The Importance of Co-Brokering in Real Estate

The steady progress of the real estate industry is apparent. While factors such as economic growth, increase in property demand, and appreciation of estate value contribute to its growth, professionals working together bring the sector to a noteworthy level of success.

Today, many real estate brokers are part of networks that practice sharing of clients and listings; the system is called co-brokering.

Co-brokering takes place when two brokers work together on a sale. One represents the buyer and the other, the seller – or the landlord, for a rental – and both agreeing to divide the commission. For sellers, their property is expected to reach more potential buyers, while buyers get the assurance that their brokers have their best interest in mind.

Real estate brokers, when co-brokering, do not only collaborate; they become partners. In a competitive industry, it is imperative to be a part of a network that has supportive and helpful professionals.

Advantageous collaboration

In co-brokering, brokers are no longer limited to his listings and clients. Whether he needs leads for his listings or listings for his clients, he can collaborate with other brokers through the networks he is a part of.

If a broker only has a few listings, it is likely that in the perspective of a buyer or renter, her options are insufficient. For sellers, a broker who does not know many people or is not part of any real estate group could take a long time to sell a property despite aggressive marketing. Therefore, the key to safeguard success in doing transactions is to find and work with people who are affiliated with real estate networks.

Exchange of expertise

The real estate industry is complicated; professionals need to know legalities, stand out to establish credibility and integrity, and network to get more business.

Co-brokering creates opportunities for brokers to learn to be better professionals in the industry. Every broker has an expertise; it may be being adept at real estate laws or having surefire ways to sell or rent out properties. Nevertheless, co-brokering is an opportunity to learn and to impart knowledge to other brokers.

Commission sharing

Brokers rely on commission for their pay. In co-brokering, disputes often arise due to commission sharing. The most familiar issue is the appropriate partition. To resolve such a conflict, brokers must agree how they will split the commission before proceeding with the transaction. If both brokers exerted the same effort and accomplished the same amount of paperwork, the commission must be divided equally to avoid dissension.

While brokers who co-broker get less commission, co-brokering expands their network, opening more opportunities to collaborate with other brokers.

Brokers must never be afraid to brave the world of co-brokering. It presents thousands of opportunities for them to assist clients better and to earn more.