I am a broker primarily working in Manhattan (commercial sales mostly but some residential as well). I am not a member of any residential MLS. I have a good client who is looking for a home in Queens. I found a few properties they would like to see. MLS Member Agent/Broker in Queens first informed me they will co-broke with me and give me 1% commission and then changed mind and said they... [more]
I am a broker primarily working in Manhattan (commercial sales mostly but some residential as well). I am not a member of any residential MLS. I have a good client who is looking for a home in Queens. I found a few properties they would like to see.
MLS Member Agent/Broker in Queens first informed me they will co-broke with me and give me 1% commission and then changed mind and said they "temporarily" don't co-broke with non-MLS members.
I don't see how it is in the Seller's best interest... I can't get access so my client can't see the house and can't make an offer. If I represent my buyer as a buyer broker then my buyer's offer will be lower by the amount commission they would pay me. The listing agent/broker (same person) doesn't respond.
Should I contact Seller and request a showing or have them talk sense to their listing agent/broker?
It looks like there will be more situations like this to come during this search.
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Response by Flutistic
over 11 years ago
Posts: 516
Member since: Apr 2007
When I was an agent I ran into this problem a few times. They do not have to share commission with you, or work with you at all.
The only way to handle this to protect your commission is to have your Broker contact their Broker (not real estate agent--the Broker in charge or the Manager in Charge!) and get a commission agreement in writing. If you can.
If you contact the seller directly, you might get in and all the rest, but you won't get paid.
The upshot is you really can't work with this client. If they are at all smart they will figure it out and will leave you soon enough.
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Response by KeithB
over 11 years ago
Posts: 976
Member since: Aug 2009
Helvetia it is the wild west in Queens, very few of the listings are the actual exclusive of the agent advertising it. many appear to have a hand shake agreement with sellers as well. We have represented 2 or 3 buyers successfully, but it was difficult. It will be case by case as far as who will co-broke, it is a very inefficient system , first try and find out who actually has the exclusive listing (if there even is one).
Best of Luck!
Keith Burkhardt
The Burkhardt Group
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Response by front_porch
over 11 years ago
Posts: 5315
Member since: Mar 2008
As a Manhattan/Brooklyn broker, my first thought is: Why don't you just have your sponsoring broker join the MLS (presumably MLSLI?) Then you'll be covered by the MLS' universal co-broke agreement, whatever that is.
ali r.
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Response by KeithB
over 11 years ago
Posts: 976
Member since: Aug 2009
Ali: Believe me, it would not matter!
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Response by kmbroker
over 11 years ago
Posts: 116
Member since: Jan 2008
To join the mls the whole firm needs to join not just the broker, and Keith is right it probably would not matter
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Response by epb
over 11 years ago
Posts: 2
Member since: Mar 2014
I will never understand why agents dont co-broke.
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Response by Flutistic
over 11 years ago
Posts: 516
Member since: Apr 2007
Agents (more accurately, real estate firms) don't like to co-broke because it's like cutting your paycheck in half. Joining BLS or MLS is way too expensive to consider for just one client, or even a few, you'd have to have a lot of them.
Keith's point is a good one, if these are really open listings you'd be able to negotiate directly with the seller, but if they're on a real MLS they are not open if the address is provided.
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Response by former_citi_broker
about 7 years ago
Posts: 2
Member since: Jan 2009
Even though this is a very old thread, I just came across it in a recent search so let me revive it and chime in here by saying: This sounds like a "Manhattan broker only" problem. We brokers here in NYC do not have an MLS in Manhattan (we do, but it's a joke, and no one uses it, and you're not required to join) as we also are not REALTORS members here.
Usually people are complaining about the inverse problem, suburban/REALTORS/MLS brokers who find Manhattan brokers won't cobroke with them (they don't have to). In this case, what the MLS broker doesn't understand is that Manhattan brokers are not REALTORS, and probably never will be, so there's no reason to demand he join an MLS to cobroke. That's like going to France and telling someone they need to change their driver's license and home address into French, in order to be able to drive a car (rather than just a temporary foreign driver permit).
Manhattan is a unique market never understood by those outside who don't live or do RE here, and agents often don't co-broke even within the same NYC borough (forget about between the 5 boroughs, where virtually no co-broke relationships exist). Sites like the one I'm writing this on have contributed to the problem ten-fold in recent years, by monopolizing the market with their advertising platform in lieu of an actual MLS. Zillow now controls nearly 90% of the advertising market in NYC, where there is no MLS, and they continue to drive anti-competitive business practices on sites like StreetEasy that pit broker against broker with no co-broking or centralized MLS, and no checks and balances with nearly 40-50% fraudulent listings and "fake" exclusives. ZIllow/StreetEasy is the result of what happens and how agents lose control of the market when there is no MLS and the local real estate board (REBNY) does nothing to work with REALTORS/NAR to remedy the problem.
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Response by ximon
about 7 years ago
Posts: 1196
Member since: Aug 2012
Aren't all REBNY members required to cooperate (co-broke) with other REBNY members? I think they are also required to split the commission 50-50 unless specifically stated in exclusive listing agreement?
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Response by 30yrs_RE_20_in_REO
about 7 years ago
Posts: 9876
Member since: Mar 2009
I suggest everyone call up the last broker they worked with and ask if they are a Realtor and then use that answer as a litmus test for the posting 2 up from this one.
Yes the National Association of Realtors and associated MLS services are so pro-business/free market, the DoJ had to explain to them what antitrust violations are.
It's very simple. The owner of the property can dictate whether or not the listing agent can co-broke. The owner can say no. In that case the broker has no choice. On the other hand, there are some brokers (not actually in Manhattan where this is rare), who refuse to co-broke no matter what, especially in Queens and somewhat in Brooklyn. Obviously they aren't serving their owner's best interest or the owner isn't serving him/herself well.
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Response by Admin2009
almost 3 years ago
Posts: 380
Member since: Mar 2014
Brokers = Lowlifes
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Response by 30yrs_RE_20_in_REO
almost 3 years ago
Posts: 9876
Member since: Mar 2009
Whatever behavior you reward is the one you get more of.
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When I was an agent I ran into this problem a few times. They do not have to share commission with you, or work with you at all.
The only way to handle this to protect your commission is to have your Broker contact their Broker (not real estate agent--the Broker in charge or the Manager in Charge!) and get a commission agreement in writing. If you can.
If you contact the seller directly, you might get in and all the rest, but you won't get paid.
The upshot is you really can't work with this client. If they are at all smart they will figure it out and will leave you soon enough.
Helvetia it is the wild west in Queens, very few of the listings are the actual exclusive of the agent advertising it. many appear to have a hand shake agreement with sellers as well. We have represented 2 or 3 buyers successfully, but it was difficult. It will be case by case as far as who will co-broke, it is a very inefficient system , first try and find out who actually has the exclusive listing (if there even is one).
Best of Luck!
Keith Burkhardt
The Burkhardt Group
As a Manhattan/Brooklyn broker, my first thought is: Why don't you just have your sponsoring broker join the MLS (presumably MLSLI?) Then you'll be covered by the MLS' universal co-broke agreement, whatever that is.
ali r.
Ali: Believe me, it would not matter!
To join the mls the whole firm needs to join not just the broker, and Keith is right it probably would not matter
I will never understand why agents dont co-broke.
Agents (more accurately, real estate firms) don't like to co-broke because it's like cutting your paycheck in half. Joining BLS or MLS is way too expensive to consider for just one client, or even a few, you'd have to have a lot of them.
Keith's point is a good one, if these are really open listings you'd be able to negotiate directly with the seller, but if they're on a real MLS they are not open if the address is provided.
Even though this is a very old thread, I just came across it in a recent search so let me revive it and chime in here by saying: This sounds like a "Manhattan broker only" problem. We brokers here in NYC do not have an MLS in Manhattan (we do, but it's a joke, and no one uses it, and you're not required to join) as we also are not REALTORS members here.
Usually people are complaining about the inverse problem, suburban/REALTORS/MLS brokers who find Manhattan brokers won't cobroke with them (they don't have to). In this case, what the MLS broker doesn't understand is that Manhattan brokers are not REALTORS, and probably never will be, so there's no reason to demand he join an MLS to cobroke. That's like going to France and telling someone they need to change their driver's license and home address into French, in order to be able to drive a car (rather than just a temporary foreign driver permit).
Manhattan is a unique market never understood by those outside who don't live or do RE here, and agents often don't co-broke even within the same NYC borough (forget about between the 5 boroughs, where virtually no co-broke relationships exist). Sites like the one I'm writing this on have contributed to the problem ten-fold in recent years, by monopolizing the market with their advertising platform in lieu of an actual MLS. Zillow now controls nearly 90% of the advertising market in NYC, where there is no MLS, and they continue to drive anti-competitive business practices on sites like StreetEasy that pit broker against broker with no co-broking or centralized MLS, and no checks and balances with nearly 40-50% fraudulent listings and "fake" exclusives. ZIllow/StreetEasy is the result of what happens and how agents lose control of the market when there is no MLS and the local real estate board (REBNY) does nothing to work with REALTORS/NAR to remedy the problem.
Aren't all REBNY members required to cooperate (co-broke) with other REBNY members? I think they are also required to split the commission 50-50 unless specifically stated in exclusive listing agreement?
I suggest everyone call up the last broker they worked with and ask if they are a Realtor and then use that answer as a litmus test for the posting 2 up from this one.
What is a “realtor”?
There is even a realtor.com
https://www.nar.realtor/membership-marks-manual/definition-of-realtor
Yes the National Association of Realtors and associated MLS services are so pro-business/free market, the DoJ had to explain to them what antitrust violations are.
https://www.justice.gov/atr/enforcing-antitrust-laws-real-estate-industry
Keith Burkhardt
TBG
It's very simple. The owner of the property can dictate whether or not the listing agent can co-broke. The owner can say no. In that case the broker has no choice. On the other hand, there are some brokers (not actually in Manhattan where this is rare), who refuse to co-broke no matter what, especially in Queens and somewhat in Brooklyn. Obviously they aren't serving their owner's best interest or the owner isn't serving him/herself well.
Brokers = Lowlifes
Whatever behavior you reward is the one you get more of.