Why Hire and Pay a Buyer’s Broker to find you Properties!
You are expanding the pool of investment properties to choose from, increasing your opportunities to find the invest property you want at the right price, keep your anonymity and you know the Broker’s loyalty is with you rather than the deal which they are paid.
A Broker or Agent is going to be paid to find a property for you. Who pays your broker is the question? Is the seller going to pay your Broker, or are you? When a Buyer is under an Exclusive Buyer’s Agent (EBA) agreement they are guaranteeing the Broker will get paid, but it does not necessarily mean you are paying the commission.
An Exclusive Buyer’s Agent (EBA) has clients under an EBA agreement. The Broker representing you can make offers on properties listed or not. They can approach owners selling their own property and make unsolicited offers on properties not for sell. There are no issues with dealing with Brokers who offer low or no commission splits (See Blog Post: Should A Listing Broker be used when selling Investment property?) on the properties they are selling for their clients. Of course, offers can be made on your behalf on listed properties of full commission Brokers. In the cases where a low or full commission split listing broker paid, the amount paid simply reduces or eliminates whatever the agreement was made regarding compensation in the Buyer’s EBA agreement.
As an Exclusive Buyer’s Agent, I have approached and been approached regarding all sorts of property opportunities regular Brokers never get to see. I am able to make offers on any and all properties. My team may approach owners and make unsolicited offers without asking the owner “will you pay me a commission”. This enables my clients with an EBA to have access to a much larger pool of opportunities. We ask the property owner to lower their price since they are not having to pay a commission.
As a Buyer’s EBA Broker, my team can approach and make offers on properties they feel you would be interest in that are not on the market (contacting property owners directly). We are often contacted by brokers with off-market or pocket listing properties where there is little or no commission. I have even been contacted by a Broker trying to get a listing, knowing if he offers a low sales commission to the property owner, he will get the listing. He wanted to know if I had EBA buyer that would be interested in the property at the price he gave his potential client. I didn’t for price he quoted. Then there are certain types of REITS that only sell their holdings direct to buyers and do not pay Brokers to bring buyers. They like using the offer as a market tool to get additional clients.
Anonymity is import to some clients. They could be buying several properties in an area and they don’t want the word to get out they are buying. Then there are those from other countries that believe they would be taken advantage of or snubbed if a buyer knew they were the buyer.
Most of my business as a Berkshire Hathaway Commercial Broker is done as an Exclusive Buyer’s Agent finding investment properties for my clients. If you would like my team and I to represent you, please don’t hesitate in contact me.
Right Answer Solutions
Berkshire Hathaway HS
Commercial Real Estate Division
Office 619 589-8600
Cell 619 948-0510
Cell 888 301-8910