How are “co broker” commissions set and paid?

ADDvantage Real Estate Network offers three innovative flat fee MLS programs in United States, none of which charge a listing commission. Sellers do offer a commissions to the agent representing the buyer, also called “the co-broke”. If a seller is successful selling to a non-represented buyer (no Realtor® involved) than no commissions is paid. But, many of ADDvantage listed properties do sell through the MLS and therefore through Realtors®. During the sign up process with ADDvantage, seller will be presented a drop down window to select exactly how much co-broke commission to offer. This commission can be set between 1-10%. ADDvantage offers two programs to help sellers with offering the right amount of commission. MLS ADDvantage® ((Program not currently available)) is our flat fee MLS service reserved for sellers offering 1-3.5% as a co-broke and Street Smart ADDvantage® ((Program not currently available)) is reserved for sellers offering 4%-10%. Why the difference? The marketing is different with Street Smart ADDvantage® because Street Smart ADDvantage® uses a unique twice per month email blast campaign to Realtors® within 35 miles of your property. In this email, ADDvantage advertises the seller's stated co-broke commission. We feel an email containing the hot news of a “fat” commission is justified. The Street Smart ADDvantage® Realtor® E-Blast enjoys a 12.5% readership of the blasted emails. The MLS is where all Realtors® will see how much commission is being offered. Realtors® know before they show a property exactly how much commission is being offered. When they present an offer, the include language such as “Blue Wave Realty to receive _% commission”. In essence, the ADDvantage broker is responsible for paying the commission to Blue Wave Realty and you, the seller, are responsible (per our listing agreement) to pay ADDvantage.