July 29th, 2010 2:05 PM

What is this thing called Broker Reciprocity?

If you are looking to buy, sell, or have been involved in any real estate transactions in the last few years, you have probably heard the term "Broker Reciprocity". You may or may not know how broker reciprocity benefits you. Lets clear this whole thing up with a quick, easy explanation for a few complicated sounding words!

Broker reciprocity is simply an agreement between all agents and brokers that are members of a given board of Realtors and Multiple Listing Service (MLS) to work with each other (co-op) to sell listed homes. For example:

 

Woodstone Realty, Inc. is the company you chose to list your home for sale on the MLS.

Any and every member of the Greater Louisville Association of Realtors (GLAR) can contact Woodstone Realty, Inc to set an appointment to show your home and will be paid a percentage commission when a contract is accepted and a closing is completed.

This may sound simple and somewhat irrelevant, but this is an important factor in todays real estate industry. Why? The ability for any Realtor, regardless of the size of the company that holds their license, to list and sell homes "levels the playing field" for every agent. The individual efforts of an agent can impact the speed and quality of your real estate experience. The justification for using the "Mega Brokers" or large franchised real estate company strictly because of their size are just plain ludicrous.

The Internet now permits the small to medium sized real estate company to offer the same, or comparable services, with lower overhead and more flexible pricing (or commission structure), which can save you money!!

So, when it comes to choosing the Realtor that best fits your budget and personality...choose with confidence knowing bigger doesn't always mean better in the world of real estate.

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