Why you are never shown some Real Estate Opportunities

I was recently told by a client he has several brokers, for way not have as many brokers and agents as possible looking for the properties he wanted.  Why would anyone sign an Exclusive Buyer’s Agent Agreement, something I use with a few of my clients?  This is a client for whom I do not have an EBA, but still keep in contact in case something comes up on the open market that he might buy. His question is one many have, but never ask. The reason is simple, investors are not show opportunities where a broker is not going to be compensation. There are may such opportunities, but American buyers in general believe a seller pays the commission. On the contrary, the buyer always pays both sides with the price they pay for the property.

I personally like to find specific off market properties for my select clients. In other words, owners of properties not for sale are contacted to determine if they would be interested in selling to my client. Since most property owners are approached all the time by brokers wanting to list their properties.  My approach is different, and I tell the owner up front I am not interested in listing their property. Rather have a pre-screened buyer who has me find the right properties on their behalf and I believe they would be very interested in your property. This buyer pays me, not you, which is less than you would pay someone to represent you to market your property. The advantage is you net more, and my buyer is happy as well. 

Another opportunity never seen by 99.8% of the buyers are properties where the listing agent does not share in the commission.  To prove my point, I wrote a broker telling him I had a buyer, but wanted to confirm they would cooperate and see if there was a commission split. See Below:

Robert,

You are correct in your understanding of the commission; we do cooperate with other brokerage firms; however, you will need to get paid by your buyers.

Thank you for your interest in this unique opportunity to acquire 186 units in the growing Springfield market, Michigan’s premiere business center. Please see the highlights and whisper pricing below and let us know if you would like to schedule a time to tour or discuss.

•                Rental market exceeds 97.4% occupancy, 4% in lease turnover from effective rent to current market rent

•                Proximate to major thoroughfares: located near I-696, the Lodge (M-10) & Telegraph Road (US-24), providing easy access to the greater Metro Detroit area

•                Excellent physical condition: A new owner can focus on interior upgrades & take advantage of significant rent premiums achieved with such improvements.

•                New Financing: Offered Free and Clear of Existing Debt

This property looked to be a good opportunity at under $150K per door. This is something my client who posed the Question “Why would anyone sign an EBA?” asked. Because he believes all compensation must come from a seller or the listing agent I don’t waste my time bringing it up, he is not privy to this opportunity unless he is on this brokage’s mailing list. Then would he read the details to know if he wanted to spend time procuring. I have properties sent to me that other brokers don’t, because I have qualified buyers. Some have signed EBA for their desire for specific types of properties and as such I am shown properties others never see.

Actions and Bank Properties

 There are different kinds of property Actions.  Some have a commssion paid to the broker who bring a buyer others do not.  Banks run across issues when they or their client must sell the property underwater.  I don't do a lot with actions, but I do lik to work with banks.