Broker Commission Rate and CO-OP

[fishfinder333]

Hi guys,

I have some questions about Broker Commission Rate and CO-OP. As we all know broker commission rate is negotiable. What is a fair rate for my broker as well as buyer broker. I'm assuming buyer broker is not negotiable.

Also if buying a new house and I do broker co-op does the builder just give you a check for the amount or does it have to spent a certain way.

Sorry for the newb questions.

 

[usctrojancpa]

Hi guys,

I have some questions about Broker Commission Rate and CO-OP. As we all know broker commission rate is negotiable. What is a fair rate for my broker as well as buyer broker. I'm assuming buyer broker is not negotiable.

Also if buying a new house and I do broker co-op does the builder just give you a check for the amount or does it have to spent a certain way.

Sorry for the newb questions.

What is the difference between your broker and the buyer broker?  Do you your agent and your agent's broker?  For example, I work for under a smaller broker where I do not have to split any of my commission with my broker (unlike the larger chains where the agents will have a 20-30% split with their broker).  In circumstances where there is a commission split with the broker, the split is based upon the GROSS commission amount before the "kickback" to the buyers.  All commissions are negotiable in terms of re-sale properties so there is no set dollar amount or % that the listing agent and buyer agent gets. 

The builder broker co-op is effectively a commission paid by the builder to the agent through the broker (all commissions go to the broker before they are disbursed to the agents by the broker).  If the agent does not provide a commission "kickback" to the buyers, then all the commission goes to the agent's broker then to the agent.  If the agent does provide a commission "kickback" to the buyers it goes into escrow and can only be used for closing costs, including the cost of an interest rate buy down.