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Good morning Superstars.

Are you working with Buyers on Short Sales and tired of having your commission reduced by the listing Broker? You know what I’m talking about. The dreaded......

• “Short Sale; approval of the seller's lenders(s) may be conditioned upon the gross commission being reduced, any reduction of the gross commission will be apportioned (50/50)between listing and cooperating brokers.”

In this current market, understanding how we get paid and who pays us has never been more important. Hopefully this will help.

First, "You do NOT have to show your Buyer a listing if the co-broke is less than what you are willing to work for." It is neither unethical or illegal for you to pass on showing a listing to your Buyer.

Do you believe that? Well, whether you believe it or not, it's true. BUT......and here's the qualifier.....you have to disclose this to the Buyer.

But....."Broker Bryant how do we do this without harming our Buyer? If the property is just right for my Buyer then shouldn't I show it to him no matter what the co-broke is?" Well that's a good question.

The answer is YES. Your job as a Buyer agent/broker is to find your Buyer a home that meets their needs. The commission should NOT come into play.

Do I have you confused yet? First I tell you, "you don't have to show them" then I tell you, "you must show them". What's up with that?

What's up with that is the good ole' Buyer Broker Agreement(BBA). Folks, you really only have two choices. You can show your buyer EVERY listing that meets their parameters, whether they offer x%, y%, z% or 100 bucks. You cannot eliminate any of them. OR you can discuss with your Buyer up front how you get paid and what your minimum fee is. Then put it in writing and have him sign it(BBA).

I know what quite a few of you will say, "I already show my Buyer every property regardless of the co-broke." Do you really? Do you show them FSBOs? Do show them a listing offering you $500? Are you really willing to work for that or are you kidding yourself?

In order to do the best job for your customer/client, the commission needs to be removed from the equation. The only way to do that is to discuss commission before you go to work and have the Buyer agree in writing on what you are willing to work for. Then, when you see a listing with a less than adequate co-broke, just ask the Buyer if he wants to see it. That's it. It's not that difficult and it holds you out as a true professional.

One more issue to clarify. As a REALTOR® it is against our Code Of Ethics to use a purchase contract to negotiate a higher co-broke. You can't do it.

Again you have two choices. First, you can negotiate a higher co-broke PRIOR to showing the property. Make the call. You never know.

Secondly, if you have a signed BBA, the Buyer can ask the Seller to contribute towards your agreed upon commission. Or he can just ask the Seller for a closing cost contribution. The difference between your agreed commission and the co-broke is a Buyer’s closing cost and the Seller can contribute towards it as part of the purchase agreement. Very simple.

Now go sell a house and never worry about the co-broke being too low or being reduced again. Be in charge of your own compensation.

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