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Seller's agent for commercial property because he has buyer?
2013 Sep 10, 9:20am 5,689 views 8 comments
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Automan Empire
@
2013 Sep 11, 10:36am
Okay, here's my update.
The broker probably would have provoked jeers and catcalls from some of the more anti-Realtor factions here.
He acted like he didn't understand the concept of split commission. I told him I wanted to rewrite the contract so he represents the buyer exclusively, then went to work negotiating up from the 3%. It looks like he pretty much wants the 6% commission or he doesn't want the deal. I held that if he brings a buyer above $XXX,XXX it would be well earned, but held firm at not paying 6%; we settled at 5%.
He tried to say, "Everything is negotiable in RE. Right now we are arguing the commission but no sale price. (duh) You can negotiate the commission later." Not if I sign a form agreeing to pay you 6% commission regardless of other agency connections. "Where does it say 6%??" Uuuuh, right here on the top of the form! "Oh yeah! (scribble scribble) Well we can change that..."
Then he set about trying to (slowly, while phones are ringing and things going like mad all around us) talk me into hiring him as a listing agent if this particular deal doesn't fly, which I have said from the get-go I don't want. I have a different agent in mind already if I go that route, and this seriously annoyed me.
If he can bring this buyer to the table above a certain amount, I'll have the property off my balance sheet earlier than expected. If this buyer doesn't put an acceptable offer on the table, there is no deal and no tying up my property. The agent is protected from the buyer waiting out a short contract and buying the same property without the agent. Looks like we've tentatively hammered out a win-win situation.
Thanks for the help, Patnet brain trust, both in this thread and in the forum at large. I'll update what happens next.
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I have a commercial property that I am considering selling; it is an auto repair shop in Los Angeles County.
Right now I am kind of waiting for the market to improve. I moved my repair operation to a bigger place nearby and this property was underutilized for 3 years, not good for the bottom line. The first half of this year I tried marketing it for sale or lease but no good offers came through. I did rebuff a guy who seemed to have read every Robert Allen book ever; he wanted me to carry 5 figures of down payment in a junior position to the mortgage- I'm a little more sophisticated than that! Under deadline with the city, I decided to reopen as a general repair shop, and operate it for at least 6 months, then next year market it for sale as an operating business.
I was approached by a realtor chick who says she has a buyer looking for an auto shop location- all well and good. Now her broker wants me to sign an agreement making him the buyer's and seller's agent for 6% commission, good for one offer with one buyer then the agreement is terminated if he doesn't want to move forward.
On the one hand, selling this property comes at a good time (can REALLY use liquid capital now) and a few percent either way is better than no sale, I have 6 figures of equity to work with. Though it was not my intent to utilize a seller's agent (have a RE attorney to help with the sale, same way I bought it) I might give this guy a try.
Aside from the commission, any other pitfalls I should beware of, signing the buyer's agent as my selling agent too? I think it's a conflict of interest, and if he didn't supposedly have an earnest buyer lined up I'd tell him to walk. What do you think, Patnet brain trust?
Thanks,
#housing