Should a listing Broker always be used when selling investment property?
Short answer: NO
Should you talk to me now even if you’re not ready to sell your property or business at this time? Short answer: YES
DIFFERENT WAYS OF SELLING A PROPERTY:
1. LIST IT YOURSELF
2. USING A LISTING BROKER
3. BE APPROACHED or CONTACT A BROKER YOU DON’T PAY (A BROKER PAID BY THE BUYERS TO FIND THEM THE RIGHT PROPERTY AND/OR BUSINESS)
Full Commission, Low Commission or No/low Commission.
Full Commission listing Brokers will market your property in many ways on multiple sites, to as many potential buyers as possible. This includes other Brokers who may have clients who are interested and willing buyers for your property. This full-service Broker will use pictures, videos, numbers (balance sheets, P&L, cash flow analysis), advertisements; they will screen and show your property to both their potential buyers and other brokers until sold. Sometimes full commission Brokers are corporative brokers and sometimes they are not. (See low Commission)
Low Commission listing brokerages are brokers who take lower commission listings and focus their efforts on direct buyers. Most Brokers offer a lower commission in order to obtain the listing. These Listing Brokers may refuse or make it difficult when it comes to cooperating with other agents or Brokerage firms. When contacted by other Brokers, they will offer low or no commission splits as well as making access to a property difficult to these broker and their clients. They’ll look to double end the deal (creating a duel agency) which also creates a legal responsibility to both sides which needs to be disclosed. The listing broker should explain their fiduciary responsibility to both sides. The Broker taking the low commission listing, will many times advertise the property as a “Buyers Only” listing, especially when the property is priced to move. This could be detriment to their client since 95% of Brokers skip over “Buyers Only” since they can’t get paid from a split commission, and they represent clients who understand they don't pay their Broker the buyer's side does. Why would a Broker make an offer on this kind of property? However, lower and no commissioned Listing Broker work with me and my team, since they know I’m contacting them as a Buyer’s Agent. In fact, I have been called before a property is ever listed by Brokers who can’t offer a commission split knowing I may already have a buyer. This is good for the seller’s listing Broker as well as their clients as it is fast and not advertised. This is sometime important to the seller and makes it easy for the listing Broker to contact me, as a Buyer's Broker, along with his existing clientele.
No Commission EBA Broker, from a seller’s point of view, would be a Buyer’s Brokers under an Exclusive Buyer’s Agent (EBA) Agreement. The EBA Broker, who works and is usually paid by the buyer not the seller. An EBA Broker does business with individuals and corporations selling their property who do not have a listing Broker's representation, Brokers rrepresenting properties but who offer low or no commission split, as well as full service commission Listing Brokers who list and offer a split for the investment properties they are marrketing on behalf of their clients. A Buyer’s Agent approaches all opportunities without a concerns regarding compensation. By being able to make offers on any and all properties without asking owners of non listed properties to pay a commission, enables clients with EBA’s to have access to a much larger pool of opportunities.
I would like to meet and discuss your property and/or business, before you consider putting it on the market. The more information about properties, property and business owners like yourself, whose information I have, the better it is for my clients, my team and you.
Just imagine sometime in the future, you go and hire a listing Broker. Your Broker does a great job markets your property only to have it flagged as sometime one of my EBA clients want. We buy your property. However, instead of my client paying me, you end up paying both your Broker’s and my commission (through your listing Broker’s split). It has been my experience that it pays to talk to me or other EBA Brokers before listing.
Is there a times where we can discuss your property(s) and present or future plans?
Please contact me at your earliest convenience,
Berkshire Hathaway HomeServices
Commercial Real Estate Division
Office 619 589-8600
Cell 619 948-0510
Cell 888 301-0891