Last week, I sat in the Professional Standards & Grievance Committee training class as everyone on the committee in their respective states must now retake the class every year instead of every two years. Seven hours of more roll playing...
I guess they make us take it so often because even though you go over the same stuff over and over again, every once in a while, something new sticks in your head. I had that experience last week.
Cooperation verse Compensation. Did you realize those are two different things?
You can agree to Cooperation with another broker allowing them to gain access to your houses and show your listings, but that has absolutely nothing to do with Compensation. Did you know and understand this?
For the above situation, I'm not talking about where you put the co-broke commission in the MLS and agree to compensation according to your board rules. I'm talking about when you get a call from an agent outside your MLS and board area, and they want to show your listing, or someone within your area who is not a memeber of your board.
For example, I get a call from an agent in San Antonio saying he's going to be in town and would like to show his client (ie probably a family member or friend) one of my listings. I can agree to cooperation and allow him in the door. That agent's mistake is that he didn't ask about compensation. See, my listing agreements state that if a non-MLS agent submits an offer, he only receives X% and not Y% as stated in the MLS.
Why is this? Because non-MLS members don't have the necessary tools to represent their client to the fullest when not from the area, not familiar with the area, not being around to help with inspections and mortgage, etc... that leave the work up to me to do to make sure the transaction closes on time. That means I'm doing twice the work and Mr. San Antonio agent gets to go back to San Antonio, sit back, and call for updates so he can let me know where to send the check when it closes.
Are you following? To help sum up, non-MLS members shouldn't assume they will be compensated just because the listing agent agreed to cooperation with them in the showing process. Always ASK!
And keep in mind, this doesn't just go for out of town agents. This goes for the Ma and Pa real estate companies who decide they don't want to be a member of the MLS and board in the area. Without being a member, they do not have the Supra keycards to gain entry. I can agree to cooperation with them, but they better understand that doesn't automatically grant them compensation.
For the buyers out there, if you're wanting "representation", you should think long and hard about using a professional who has all the necessary tools to represent you fully. Don't chose someone just because they're licensed in the state if they do not regularly work in the area you're wanting to buy in.