Commercial Brokers
and our policies relating to
Commercial Brokers
Did you know...
Commercial Brokers today work more closely than ever before?
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As commercial brokers, we are strong with direct 1031 principal buyers seeking replacement properties and other investors.
Our commercial brokerage agreements with our buyers are typically non exclusive for
identifying properties, then exclusive to a particular property exclusive we identify a property the buyer is currently unaware of.
Commercial broker policies common to medium-to-larger commercial brokerage firms in the industry
that "allow" a registration for a single property or one buyer for a short
duration does not sit well in our ball park. As professional commercial brokers, we are not looking to
be "allowed" an opportunity by another commercial broker, but work with commercial brokers who respect and
appreciate a commercial broker source that qualifies their buyers while at the same time granting those commercial brokers protection for procurement
of their respective buyer clients - especially where there has been no prior dealings.
These single property/buyer commercial broker registrations may work well for residential broker who
just doesn't have the time or commercial brokerage expertise. These registrations may also work commercial brokers who are perhaps
hungry and figure "what the heck, it's worth a shot".
Regretfully, many of these commercial brokers find out the hard way, usually after a closing, that their client successfully
closed on either the property they procured or even more sickning, on another property listing commercial broker introduced their client to!
They try, but it's too late to do anything since the listing commercial broker's registration agreement required the buyer to work with the listing commercial
brokerage office exclusively.
We are not residential brokers and we are not commercial brokers crossing our fingers and hoping for that one deal to miraculously
close. In reality, the chances of closing on the first deal presented is
rare. In most cases, we find it is the 4th, 9th, or even 20th property
that triggers an offer since most buyers fine-tune their acquisition criteria or suffer through failed
attempts at other offers.
Taking a closer look at these typical listing commercial broker registrations, we are very aware that there are "other properties" that the listing commercial broker (or office)
usually has ready for the newly-stolen registered buyer. Of course, these are never mentioned their registration agreements. The silence strategy, along with the silence of other major confidentiality
issues, allows the listing commercial broker to solicit the buyer directly - with no obligations to the unsuspecting buyer commercial broker who brought the buyer in. The listing commercial broker has established
has created a personal open hunting season on the buyer and can increase their chances of closing with the newly-stolen buyer that was so generously handed over by the wiling buyer commercial broker. We do not support this practice of robbery, to say the least!
We work to develop relationships with listing commercial brokers who respect
our time and quality buyers. These cooperating listing commercial brokers are
those who go out of their way to offer protection of client relationships
in exchange for an increased amount of quality activity that is customer first, not the commercial listing broker office first.
Our way of handling commercial broker cooperation is simple and effective.
We are not a "Referring Commercial Broker" nor do we engage ourselves as "Co-Brokers". Co-Broker, by definition, is any other broker who becomes involved in a transaction
also represents the seller unless otherwise disclosed. Listing
commercial brokers we work well with understand this simple concept that they
are the agent exclusively for the seller and therefore should
not conduct agency duties on behalf of a buyer we procure. Never is a listing
commercial brokers asked or expected to deviate from their role as exclusive
agent for seller.
The law of agency dictates that every seller, as a principal, is
responsible for the acts of their sub agents. Our goal is to
locate the best possible property for our buyers and to successfully
deliver an executed offer to the commercial listing broker that
is accepted by the property owner. Since we are not engaged as a Co-Broker, we avoid
locating a property for our buyers and then abandoning the buyer for the seller's interests
as a Co-Broker or sub-agent to the seller is expected to do.
We are a duly licensed commercial real estate broker. It is always a buyer's
choice, not a listing broker's choice, as to what type of agency (if any)
the buyer desires, who the buyer authorizes to procure a property,
who negotiates their offer & contract, and who carries out other agency
responsibilities associated with a transaction. Our buyers understand this and have authorized
us to procure properties for their benefit, and have elected to represent themselves with
regards to many other agency issues.
We will be confirming the following with all commercial brokers who request that we present their
properties to our buyers:
1. That you are personally the direct agent to the seller. If your company is
the listing office and another agent in your company is the
listing agent, you will not be considered as personally direct to the seller.
2. Commissions are always split 50/50 between your licensed commercial brokerage company and our
licensed commercial brokerage company should a closing occur with your
seller and a buyer procured by our company. We are ALWAYS direct to our
principal buyers on our end when working with cooperating commercial brokers.
3. Your company has a written commission agreement, listing agreement
or authorization to sell the property presented.
4. The total commission the seller has agreed to pay your company should you sell this
property.
Listing commercial broker policies that will not work with us include:
1. We consider every transaction as a life decision for our clients. Commercial brokers we work with should treat their presence in this business as such. Listing commercial brokers who outright lie or give very little regard to our questions regarding their true role are outcasted by us. Many agents indicate that they are the Principal Sellers not participating in commissions, thinking they can change hats at any time. Other agents will indicate that they are personally direct to the seller when in fact, all they are doing is promoting the listing of another buddy broker of theirs. We quickly find out the truth as a result of our business practices and when the truth contradicts past representations, there is no second chance in our books. We interpret any untruthful representations as either lying agents or agents who are too ignorant to understand the urgency of this commercial brokerage business. As a result, either way, we do not have the time to explain or educate the way in which commercial brokers should act and choose to simply never work with these agents ever again - PERIOD.
2. Listing commercial brokers who consider the listing commission "none of our business"
3. Commercial brokers offering no shared commission at all. These are commonly commercial properties that say "Principals Only"
4. Commercial brokers sharing a predetermined amount to an outside
(selling) broker which is less than 50% of the
total commission paid by the seller to the listing commercial broker office
5. Commercial brokers hung up on basing splits on their interpretation
of how and who a buyer chooses to handle buyer responsibilities and duties
6. Commercial brokers who require us and our buyers to consent to the
full release of our hard earned, proprietary, and
confidential buyer contact information and relationships
as a precondition with no recourse (buyer registrations)
7. Commercial brokers who prefer to focus on buyer responsibilities
even though it's the buyer's concern, rather than focusing on
closing a transaction and building a solid reciprocal commercial brokerage relationship for future transactions.
Like all sellers and buyers, we prefer to not walk into situations where
there is absolutely no up front agreement in place between the commercial brokers. This leads to various
commercial broker interpretations that normally stink up a transaction.
As professional commercial brokers, we prefer to close a handful of good transactions rather than throwing a bunch on the wall just to see if a few will stick.
In it's simplest terms, we require, up front, an agreement between the commercial brokers, outlining an equal
sharing of commissions along with the addressing of non-circumvention & non-disclosure issues and the
recourse afforded for the breach of issues therein.
This proven business practice is putting the horse before the cart. Presenting a property to a buyer
with unknown commercial brokerage issues is in our interpretation placing the cart before the horse. Therefore,
we never reach a point of presenting properties where there is no
prior written understanding between the commercial brokers. This is precisely why any
buyer working with us knows that the property is
deliverable with no broker squabbling. Our written agreement with our buyers require this.
There is a common saying in the industry:
"Most transactions are killed by the bickering of the commercial brokers in the deal".
We conduct our business in the arena of written knowns and thus, avoid
being tagged as a dreaded bickering broker with no control.
We are relationship driven, not deal driven. Commercial brokers who we
work well with also enjoy an added benefit of knowing about
our new buyer acquisition criteria as we receive them. Principal
sellers, buyers, and other brokers routinely ask us about our
cooperation experiences with other commercial brokers and/or firms in their
research to determine whether or not they would be represented
well. We openly share our experiences and look forward to building new commercial broker relationships.
As an broker for the seller, return to our seller input forms to let us know about your commercial property you would like for us to presnet to our buyers 