Some discount brokers may encourage you to offer a lower co-op commission than what other sellers ares offering.  Many discount brokers have gone out of business doing this,  but if you want to offer a lower co-op here are some points to consider:

·       Realtor's® have most of the buyers

·       Realtor's® spend lots of time and money developing buyers

·       Realtor's® spend much more time with buyers than with most sellers

·       Realtor's® cannot predict the time and effort necessary to work with a buyer

·       Buyers are really paying the commission

·       The commission looks like a sellers charge, but that is to get it included in the loan, saving buyers out of pocket cash

·       Buyers alone know the effort provided by their Realtor® and what the service is worth

·       Buyers may have a contract with their Realtor®

·       The Realtor® maybe offering the buyer a reduced commission to represent them both as buyer and seller, giving them more money as down payment and better qualified

·       Realtor's® may have to ask the buyer for the commission you didn't pay

·       You reduce your competitiveness in the Multiple Listing Service (MLS)

I have learned a lot about real estate commissions in my 30+ years.  I do not know of another Realtor®  who has spent the time evaluating real estate practices and ways to save costs.  I know how to reduce most sellers cost as selling your home can be accomplished in a predictable number of  hours.   I do not know how to reduce the cost with buyers as their time requirements  vary greatly.  I have been called by a buyer saying they've found a house and want me to represent them.  Other times I have spent months with buyers, shown them 50+ homes and written multiple offers.  It is the buyer who should benefit from their situation, not the seller.  THE SELLER IS GETTING A BUYER, THAT IS WHAT SHOULD CONCERN THE SELLER AND TO DO OTHERWISE  IS  COMPETITIVELY  DAMAGING YOU!  When I see a less than expected co-op  commission I usually think this seller is going to hard to deal with and in every case that has been true! 

In my extensive experience I have seen many sellers offer a lower co-op commission and my observation is that few of these sellers sell.  The successful sellers get their home in immaculate condition, price their home competitively, welcome every buyer without restriction, offer an acceptable co-op commission, giving their broker every advantage to sell their home.  Opening your home to the most buyers is going to be what sells your home in the shortest time, at the highest price with the least stress.  That means offering a full pay check to the person you want to attract, a Realtor® with a ready, willing and able buyer!  

Co-op commissions will decline but that will require a major change in the real estate market.  I feel confident the change is coming but it is not here yet and you may damage yourself by not offering a large enough real estate co-op commission.  I was instrumental in changing real estate once and I feel I can do it again, but the co-op commission is not ready to be changed today.  We have to wait until we change some fundamental real estate practices.  With your help, SUPPORTING ABC REALTY WITH REFERRALS,  the next time you sell, real estate practices may have changed and you maybe able to offer a lower co-op and still be competitive!  TODAY DO NOT EXPECT TO BE COMPETITIVE WITH LESS THAN THE MARKET PLACE CO-OP!

Don Stark
Don Stark
Broker and Owner
4730 Shady Lane Colorado Springs CO 80908