An agen't "greed" is not always the reason there is no commission co-op. Often it is an unwritten corporate policy of the brokerage. BUT, as the CRE market has struggled the past few years the handful of commercial real estate brokerages that would not share commission on their listings have generally softened on cooperating with agents/brokers who bring investors to the table. Bottom line -- they NEED to move the property for their sellers and commission co-ops help that happen.
But the refusal to co-op creates many problems from both listing agents and agents representing investors on the buy-side. First, as a listing agent, you have an obligation to market the property in a manner that brings in the most possible qualified buyers. But if you refuse to cooperate on commission you shut out quite a few transaction opportunities, thereby doing your seller a disservice. As a buyers agent, you have an obligation to bring every possible property that fits your investor's requirements to their attention, without regard to your personal gain. But if buyers' agents do not bring such "no co-op" properties to their buyers' attention, aren't they also doing their clients a disservice?
The unwillingness to cooperate on commission actually creates ethical issues for both buyers' and sellers' agents and brokerages. The smart business approach is bo co-op on commissions. It will always move more property and result in more closed transactions. That fact cannot be disputed.
My two cents....
Mar 17, 2012