Definition
The practice of listing brokers offering commission to cooperating brokers who represent buyers, incentivizing buyer's agents to show your property.
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Standard practice is the seller's agent (listing agent) offers 2.5-3% commission to the buyer's agent (cooperating broker). This cooperation incentivizes buyer's agents to show and recommend your property. Without cooperation commission, buyer's agents have little incentive to spend time on your property. Cooperation rates are negotiable but typically follow market standards. Offering below-market cooperation (like 2% instead of 2.5%) discourages buyer's agent participation and reduces exposure. Properties with no cooperation (owner-for-sale by owner properties) typically sell for less because buyer's agents avoid them. Cooperation is stated in the MLS and included in contracts. Understanding cooperation rates helps sellers understand buyer's agent incentives. Some newer MLSs allow variable cooperation, with agents negotiating different rates—this can reduce buyer's agent participation if rates are too low.
Pro Tip
Ensure your listing offers competitive cooperation commission (typically 2.5% or higher). Lower cooperation rates discourage buyer's agents from showing your property.
Example
A listing offers 2.5% cooperation commission to buyer's agents. This incentivizes agents to show the property and recommend it to their clients.