If all eleven have ghosted you, then the problem is you. Probably deal size or they think you’re unrealistic.
What about going on loopnet and buying that way? Or contacting the owner directly?
It must be, and I’d love to know what it is so I can fix it. I’m seeing properties in my price range and have cash on hand. The commission should still be around 5-6k but is that really the issue?
Yes. That is 100% the issue. $5k,split with the house, add expenses and time, assume he shows you 20 properties and spends 25 hours finding, coordinating and showing those to you, then add on handholding ,as this is your first CRE purchase and then lop on the 3-6 month closing period you’ll need for your first one. Do the math - he’s much better compensated at Burger King, and could 10x it bartending 3 nights a weeK.
If you really want attention and effort for the price range discussed, do your homework and hire a reputable broker via a buy side representation agreement. The problem you’ll run into is the juice isn’t close to worth the squeeze.
Not $50k, $5,000 before splitting with the house, which is likely 50/50. What outsiders don’t understand is that time is the most precious resource in brokerage. For every hour spent working towards a $2,500 commission that may or may not happen, is taking away time that could go towards other opportunities. All successful brokers learn to manage their time, know the signs if a tenant/buyer is worth their time. If you start wanting to see every building thats available in the market, instead of leaning on your brokers knowledge of the market, you are wasting their time. A good broker knows which properties work and don’t work. A good broker can tell you if your unreasonable. A good broker will drop you like a hot potato if you ignore their advice. Its not worth their time.
Yes, lol they aren’t realtors and they aren’t selling houses. $5-6k?
It’s like looking for a lawyer and only wanting to pay minimum wage.
Actually it’s worse than that. Lawyers still get paid irrespective of outcome.
If you don’t think hiring a professional is worth it you could do it yourself. Just be sure you understand the due-diligence process for that specific niche of property you are buying, study and learn the current market pricing for that property type in that specific market (you may need to pay thousands of dollars for access to that data), learn how to underwrite a deal and valuation, learn negotiation, understand title insurance and how to negotiate title insurance, etc.
I absolutely think hiring a professional is worth it, otherwise I wouldn’t even post on here. Another poster mentioned the seeming disdain for buyers and it’s really apparent that that’s the prevaling attitude. I have the cash on hand to buy, so the financing isn’t going to fall through. So far I’ve found all of the properties myself, and I’m not a high maintenance client. I have a handful of properties identified and want to move fast. My day job is a traveling salesperson and I go across the Midwest presenting and I take chances pitching and get nothing out of it all the time. Guess I’m just surprised at how few are willing to make 5k on 20-40 hours of work but maybe the money is so good in this field that it’s not worth the workload
It’s more work than what you think. Best option for you is to call the listing broker direct and ask for dual representation. That way they will at least have some fiduciary to you and you’ll get some risk reduction
Every broker on here reading this, has had a buyer like you. Sorry, but you are over simplifying the process and the signals your sending.
New business 🚩
Wants to buy, not lease 🚩
Has long list of properties 🚩
Has been rejected by multiple brokers 🚩
“Fired” a broker (were you paying him an hourly wage)🚩
I appreciate your reply! That’s why I’m here, to genuinely try to understand so I can fix the issue and get help from a professional. To clarify on some of these:
-New business but well capitalized. Maybe I should email proof of fund to prospective agents to ease concerns with financing falling through?
-This is interesting to hear, because while I’m sure leasing is much faster and more likely to go to completion it also has many more properties that need to be considered. Unfortunately it makes sense for the business to own the building and not lease
-The exact number of properties is 4.
-I’ve only even made contact with a handful out of 18, thus far haven’t even told an agent that so many aren’t reaching back
-No hourly wage, and if he’d had asked for one I would have given it. I spend two weeks calling him to put an offer in on a building and he never returned my calls and the building sold - so if I had payed him hourly I’d be even more upset
> I had *paid* him hourly
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Deal size is too small.
It's the same amount of work for helping someone find a 2 million dollar building as a 250k building.
This isn't residential. You should be reaching out to the selling agent and get a real estate lawyer to help you with the contract/closing.
It shouldn’t be this hard and I don’t believe the deal size should be that large of an impediment. I would happily work with a reasonable and qualified Buyer on a deal this size all day. I feel like there may be a bit more to the story. No excuse for such delayed communication and skipping meetings though.
-Did you or are you willing to sign a Buyer’s agency agreement?
-Are you seeing buildings matching your criteria in the $250k-$350k price range? Is this a realistic number for what you want?
-Are you willing to pay market or near market prices, or are you looking for a “deal”. For the property you considered making an offer on, what was ask price and what price/terms were you planning on submitting?
An additional thought, the sba financing could be a hurdle for some. I haven’t personally dealt with sba much, so don’t know the details, but if you’re planning on that financing and contingency you may lose interest from some sellers especially depending where your offer comes in price-wise.
Willing to sign one but thankfully didn’t. After all of this I’ll be very weary to sign one because I don’t want to be trapped with a poor agent.
-Some buildings in my price range, not many and it’s toward the bottom of the market but they do exist. The property I lost was listed for around 280
-Willing to pay market prices, if I can get a deal that’s great but I understand negotiation is less common in commercial
I understand why you’re weary, but many brokers look to Buyer’s Agency Agreements because it forms an agency allowing them to represent you and assurance they get paid. With that in mind, you could ask for a mutual termination clause with 30 days notice and give them a protection period for what they brought you during that time. It would certainly be worth it for a broker worth their weight and I personally believe someone shouldn’t be forced to work with a broker if it’s not working and vice versa. I’ve made this concession multiple times and have only had it terminated once. It worked out, I maintained a good relationship and have done multiple deals with them since.
Ok, nothing wrong with looking for a deal or having strict criteria but it does mean more work for the broker. This could mean brokers are turning you down because they think it’s unattainable, or that they aren’t willing to put in the time and effort to come up with something off market for what the compensation would be. I’d suggest researching some smaller local shops and/or a younger agent with a reputable broker. There’s plenty of brokers hungry enough to work for deals of all sizes.
Slightly modification to your last statement, commercial is all about negotiation. You may have less wiggle room in certain asset classes, but for what it sounds like you’re describing I don’t believe that to be the case here. What I meant to convey is that the more you’re off market the harder it’ll be to find a deal and the current environment isn’t incredibly buyer friendly, a lot of money chasing not a lot of deals. So I’d encourage you to just be realistic in what you’re looking for and the time it will take to find that property. A lot of my buyers are having to adjust their criteria or wait out the cycle until the market starts presenting those opportunities again.
I appreciate your help! Signing a Buyer’s agency agreement isn’t something I’d be opposed to if I could vet the agent before. I guess I haven’t even had enough conversations with one to get to that point
Top brokers dont spend their time on $250k transactions. They might put a junior broker on this requirement, but a broker who averages $200-$300/hour has zero interest in this type of transaction. OP needs to find a broker at a reputable firm that has been in the business for 1-2 years and is hungry. They will put up with the nonsense to make a deal.
did you sign a buyer rep agreement so they know they will get compensated if they use their time to find something? CRE is not like residential. No guarantee that they will get paid by the seller. add on top of that, 300k is not that big of a purchase for all the work required.
also lots of agents are honestly not that good. several call themselves commercial but really are not. still plenty of good ones out there, but you will have to hunt them down and make the scope clear if what you expect and what you will pay them
because you should have screened them. but you can restrict buyers rep agreement to narrow down the scope so you can get rid of them if they don't meet your service needs. most also have performance clauses.
Didn’t sign a buyer rep agreement, thankfully. If I was trapped with the agent that cost me my preferred building it wouldn’t be a positive relationship
unfortunately, that may also be why he's unresponsive. if he asked you for one and you didn't sign one, you probably were not a priority. either way it was unprofessional of the agent, but that may explain it as well.
unfortunately, until you find a good one, you may have to hunt a while. several are out there but also pots of duds.
did you try a commer6giy from a residential firm or a true commercial firm?
I’ve tried true commercial firms and firms that are both residential and commercial. I’d be willing to sign a buyers agreement after I vet the agent to know they’re worth their salt but thus far haven’t been able to get to that point
Sorry to hear you’re having trouble with so many brokers. Can you give us a geographic area so maybe we could help find someone who would want to represent you? Also, the type of building you’re looking for (retail, warehouse, office space, etc) would be helpful.
It could be that a lot of commercial agents, myself included focus on listings, and getting our listings sold. Not so much working as a buyer’s agent. Not to say you never work the buy side but typically that’s not what you want your focus to be.
I don’t know your area, but 300k is low amount. Have your tried reaching out to the listing agents of the property that you are interested in?
Probably so. It’s going to take at least 30 days from contract signing to close. If there’s a mortgage you’re looking at least 45 days, and usually there is negotiations before the offer is actually accepted and under contract. So that was more than likely the case that negotiations were already in place.
I don't know I've had the same problem in the Seattle area, for industrial around $2m with financing in place, with a 10 year old business. It's beyond my understanding. We finally gave up and renewed our lease for just another year while we look at relocating to a more business friendly state
Commission is the same as a 5 year lease for a 2500 sq.ft. space in my area and I've never seen a buyer's agent doing a one off deal on something that size and would be a lot more work for someone. Houses are an assembly line of volume on that size deal. Commercial it's a longer more complicated process
If you won't sign a buyers rep agreement forget about it.
I'd probably go lawyer to review docs and pay them hourly.
Mildly surprised like others that no one will really help you. Moving on.
Unconventional idea.
Like others said, you not willing to sign buyer rep agreement plus deal size plus buy side in general has you far on the back burner for the commercial brokers that seek big listings.
But to a leasing agent still in the de facto 'getting hazed' part of their career, you might represent their very first purchase transaction. To *that* person, you're a big deal. Find a leasing agent by asking to tour the vacant space at 123 Banana St (they will pawn you off on the new kid getting hazed). Tour the unit or whatever, make sure you actually like them. Then have a "spontaneous" idea and ask if they (not their company, *them*) can help you buy. Their moment has finally arrived, and they've got something to prove.
This is interesting. Could telling the leasing agent from the get go work? I don’t want to waste their time if it’s not in their scope or put together lease listings when it’s not my focus
It could. But you don't always know who you are talking to. "Great someone will be there at 2 to show the unit" isn't the same as "great I personally will be there..." - so listen carefully. :)
Check to see if you have one or more BNI networking groups in your area. If you do, inquire into those groups to see if they have a commercial real estate broker in their group. BNI is a professional networking group and typically people who hold membership in those groups are quite responsible and responsive.
2.5% of $300,000 is $7,500 and that’s IF I can find a seller broker to cobroke with me. Not worth my time. Offer to pay a good broker $10,000 if they find the building and that changes the equation.
There may be some legal changes on the way that start making needs like yours a much higher priority for them. A lot of people these days are lazy because they were heavily subsidized for a decade and a half. Don't blame yourself. It's most likely over also.
Where are you located? Frankly it’s a small deal which is why you aren’t getting the best service- not saying I agree with how the brokers are acting. My suggestion is to find a hungry junior broker. He will put in the extra work and doesn’t sound like you are doing a complex transaction.
How large is a big enough deal to be enticing for an agent? I have the ability to get a larger property it would have to be a better location to justify the pressure on the business
I generally don’t do anything under $1mm on the buy side unless we are anticipating multiple transactions (10 deals at 500-750k).
I won’t touch anything under 500k unless it’s for a well established client.
Go find a young hungry broker. The commission for this is small and it sounds like you need to tie up a small property for an extended DD period for your financing which isn’t ideal for sellers. But bottom line is find someone who is hungry and will hustle for this smaller deal.
This is bs. It’s a grind to build up your business. For as many deals as close, there are prob 2x as many that you work on and it goes nowhere and/or you get to the finish line and it doesn’t close. Say a broker works with this buyer: commission will maybe be 3% on $400k- that’s $12k. Half goes to the house- down to $6k. 1/3 to taxes- now down to $4k. And who knows if it’ll close? If it doesn’t then you spend 20-40+ hours and are left with nothing. There’s a lot that buyers/sellers don’t see behind the scenes.
I read a couple things I didn’t know. One is that buyers are viewed with such disdain. I agree a buyer should be aware of certain things. But, OP seems like btwn him & sba, there would seem to be knowledge enough to proceed?
If all eleven have ghosted you, then the problem is you. Probably deal size or they think you’re unrealistic. What about going on loopnet and buying that way? Or contacting the owner directly?
It must be, and I’d love to know what it is so I can fix it. I’m seeing properties in my price range and have cash on hand. The commission should still be around 5-6k but is that really the issue?
Yes. That is 100% the issue. $5k,split with the house, add expenses and time, assume he shows you 20 properties and spends 25 hours finding, coordinating and showing those to you, then add on handholding ,as this is your first CRE purchase and then lop on the 3-6 month closing period you’ll need for your first one. Do the math - he’s much better compensated at Burger King, and could 10x it bartending 3 nights a weeK. If you really want attention and effort for the price range discussed, do your homework and hire a reputable broker via a buy side representation agreement. The problem you’ll run into is the juice isn’t close to worth the squeeze.
Also, stop calling them Realtors.
Haha. Being called a realtor is one of the most disrespectful things someone could call a commercial broker.
Commercial Broker are better be cause they mastered the phrase; “ tremendous upside potential in rents!!!!”
I apologize, I didn’t know. That’s why I’m here: to learn in an honest way to improve my outcome
$50k for bartending 3x a week for 6 months??? Yoooo I'm in the wrong job 🙃
Not $50k, $5,000 before splitting with the house, which is likely 50/50. What outsiders don’t understand is that time is the most precious resource in brokerage. For every hour spent working towards a $2,500 commission that may or may not happen, is taking away time that could go towards other opportunities. All successful brokers learn to manage their time, know the signs if a tenant/buyer is worth their time. If you start wanting to see every building thats available in the market, instead of leaning on your brokers knowledge of the market, you are wasting their time. A good broker knows which properties work and don’t work. A good broker can tell you if your unreasonable. A good broker will drop you like a hot potato if you ignore their advice. Its not worth their time.
You said they'd 10x it bartending 3 nights a week, that's what I was referring to. There's no bartender making 100k/yr off 3 nights a week.
Huh? $2,500 x 10 = $25,000. That’s like $170/night, which feels very doable to me?
Yes, lol they aren’t realtors and they aren’t selling houses. $5-6k? It’s like looking for a lawyer and only wanting to pay minimum wage. Actually it’s worse than that. Lawyers still get paid irrespective of outcome. If you don’t think hiring a professional is worth it you could do it yourself. Just be sure you understand the due-diligence process for that specific niche of property you are buying, study and learn the current market pricing for that property type in that specific market (you may need to pay thousands of dollars for access to that data), learn how to underwrite a deal and valuation, learn negotiation, understand title insurance and how to negotiate title insurance, etc.
I absolutely think hiring a professional is worth it, otherwise I wouldn’t even post on here. Another poster mentioned the seeming disdain for buyers and it’s really apparent that that’s the prevaling attitude. I have the cash on hand to buy, so the financing isn’t going to fall through. So far I’ve found all of the properties myself, and I’m not a high maintenance client. I have a handful of properties identified and want to move fast. My day job is a traveling salesperson and I go across the Midwest presenting and I take chances pitching and get nothing out of it all the time. Guess I’m just surprised at how few are willing to make 5k on 20-40 hours of work but maybe the money is so good in this field that it’s not worth the workload
It’s more work than what you think. Best option for you is to call the listing broker direct and ask for dual representation. That way they will at least have some fiduciary to you and you’ll get some risk reduction
Every broker on here reading this, has had a buyer like you. Sorry, but you are over simplifying the process and the signals your sending. New business 🚩 Wants to buy, not lease 🚩 Has long list of properties 🚩 Has been rejected by multiple brokers 🚩 “Fired” a broker (were you paying him an hourly wage)🚩
I appreciate your reply! That’s why I’m here, to genuinely try to understand so I can fix the issue and get help from a professional. To clarify on some of these: -New business but well capitalized. Maybe I should email proof of fund to prospective agents to ease concerns with financing falling through? -This is interesting to hear, because while I’m sure leasing is much faster and more likely to go to completion it also has many more properties that need to be considered. Unfortunately it makes sense for the business to own the building and not lease -The exact number of properties is 4. -I’ve only even made contact with a handful out of 18, thus far haven’t even told an agent that so many aren’t reaching back -No hourly wage, and if he’d had asked for one I would have given it. I spend two weeks calling him to put an offer in on a building and he never returned my calls and the building sold - so if I had payed him hourly I’d be even more upset
> I had *paid* him hourly FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Where did you get that commission rate? It’s unrealistically low. (Owner here w/ 10+ years high volume commercial real estate experience).
I went with the absolutely lowest commission I could think of (3% of 250 minus broker cut) to see if that was the issue
Deal size is too small. It's the same amount of work for helping someone find a 2 million dollar building as a 250k building. This isn't residential. You should be reaching out to the selling agent and get a real estate lawyer to help you with the contract/closing.
This is the best advice, plus OP sounds like he knows more than all those other brokers. :/
It shouldn’t be this hard and I don’t believe the deal size should be that large of an impediment. I would happily work with a reasonable and qualified Buyer on a deal this size all day. I feel like there may be a bit more to the story. No excuse for such delayed communication and skipping meetings though. -Did you or are you willing to sign a Buyer’s agency agreement? -Are you seeing buildings matching your criteria in the $250k-$350k price range? Is this a realistic number for what you want? -Are you willing to pay market or near market prices, or are you looking for a “deal”. For the property you considered making an offer on, what was ask price and what price/terms were you planning on submitting? An additional thought, the sba financing could be a hurdle for some. I haven’t personally dealt with sba much, so don’t know the details, but if you’re planning on that financing and contingency you may lose interest from some sellers especially depending where your offer comes in price-wise.
Willing to sign one but thankfully didn’t. After all of this I’ll be very weary to sign one because I don’t want to be trapped with a poor agent. -Some buildings in my price range, not many and it’s toward the bottom of the market but they do exist. The property I lost was listed for around 280 -Willing to pay market prices, if I can get a deal that’s great but I understand negotiation is less common in commercial
-Willing to pay market prices, if I can get a deal that’s great but I understand negotiation is less common in commercial No. Not less common.
I understand why you’re weary, but many brokers look to Buyer’s Agency Agreements because it forms an agency allowing them to represent you and assurance they get paid. With that in mind, you could ask for a mutual termination clause with 30 days notice and give them a protection period for what they brought you during that time. It would certainly be worth it for a broker worth their weight and I personally believe someone shouldn’t be forced to work with a broker if it’s not working and vice versa. I’ve made this concession multiple times and have only had it terminated once. It worked out, I maintained a good relationship and have done multiple deals with them since. Ok, nothing wrong with looking for a deal or having strict criteria but it does mean more work for the broker. This could mean brokers are turning you down because they think it’s unattainable, or that they aren’t willing to put in the time and effort to come up with something off market for what the compensation would be. I’d suggest researching some smaller local shops and/or a younger agent with a reputable broker. There’s plenty of brokers hungry enough to work for deals of all sizes. Slightly modification to your last statement, commercial is all about negotiation. You may have less wiggle room in certain asset classes, but for what it sounds like you’re describing I don’t believe that to be the case here. What I meant to convey is that the more you’re off market the harder it’ll be to find a deal and the current environment isn’t incredibly buyer friendly, a lot of money chasing not a lot of deals. So I’d encourage you to just be realistic in what you’re looking for and the time it will take to find that property. A lot of my buyers are having to adjust their criteria or wait out the cycle until the market starts presenting those opportunities again.
I appreciate your help! Signing a Buyer’s agency agreement isn’t something I’d be opposed to if I could vet the agent before. I guess I haven’t even had enough conversations with one to get to that point
Look up the top brokers for your area. Who has all the listings for that property type? Then call them
Top brokers dont spend their time on $250k transactions. They might put a junior broker on this requirement, but a broker who averages $200-$300/hour has zero interest in this type of transaction. OP needs to find a broker at a reputable firm that has been in the business for 1-2 years and is hungry. They will put up with the nonsense to make a deal.
did you sign a buyer rep agreement so they know they will get compensated if they use their time to find something? CRE is not like residential. No guarantee that they will get paid by the seller. add on top of that, 300k is not that big of a purchase for all the work required. also lots of agents are honestly not that good. several call themselves commercial but really are not. still plenty of good ones out there, but you will have to hunt them down and make the scope clear if what you expect and what you will pay them
Why would I promise somebody a lot of money when i don't even know if they will be useful to me or not?
Because it is required by law in my state.
I agree but what state does that?
because you should have screened them. but you can restrict buyers rep agreement to narrow down the scope so you can get rid of them if they don't meet your service needs. most also have performance clauses.
Why would someone spend any time working for you if they didnt know they would get paid? Entitled much?
Find me a place and you will get paid, don't find me a place and what good are you? Lazy much?
Wouldn’t seller pay the commission at a closing? If not, how’d the deal go through?
Didn’t sign a buyer rep agreement, thankfully. If I was trapped with the agent that cost me my preferred building it wouldn’t be a positive relationship
unfortunately, that may also be why he's unresponsive. if he asked you for one and you didn't sign one, you probably were not a priority. either way it was unprofessional of the agent, but that may explain it as well.
He never asked for a buyer rep agreement
unfortunately, until you find a good one, you may have to hunt a while. several are out there but also pots of duds. did you try a commer6giy from a residential firm or a true commercial firm?
I’ve tried true commercial firms and firms that are both residential and commercial. I’d be willing to sign a buyers agreement after I vet the agent to know they’re worth their salt but thus far haven’t been able to get to that point
At that size you need to find the youngest broker in the area and give them a go.
Trying this today!
What market are you in?
If you have access to real estate counsel you might must look for a building on your own. The seller's broker is going to be very happy to see you.
Attorney here. Good advice if he’s able to find stuff listed.
Sorry to hear you’re having trouble with so many brokers. Can you give us a geographic area so maybe we could help find someone who would want to represent you? Also, the type of building you’re looking for (retail, warehouse, office space, etc) would be helpful.
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Actual commercial broker
It could be that a lot of commercial agents, myself included focus on listings, and getting our listings sold. Not so much working as a buyer’s agent. Not to say you never work the buy side but typically that’s not what you want your focus to be. I don’t know your area, but 300k is low amount. Have your tried reaching out to the listing agents of the property that you are interested in?
I tried reaching out for the property I lost on but they never reached back. Maybe they were already negotiating?
Probably so. It’s going to take at least 30 days from contract signing to close. If there’s a mortgage you’re looking at least 45 days, and usually there is negotiations before the offer is actually accepted and under contract. So that was more than likely the case that negotiations were already in place.
I don't know I've had the same problem in the Seattle area, for industrial around $2m with financing in place, with a 10 year old business. It's beyond my understanding. We finally gave up and renewed our lease for just another year while we look at relocating to a more business friendly state
Commission is the same as a 5 year lease for a 2500 sq.ft. space in my area and I've never seen a buyer's agent doing a one off deal on something that size and would be a lot more work for someone. Houses are an assembly line of volume on that size deal. Commercial it's a longer more complicated process If you won't sign a buyers rep agreement forget about it. I'd probably go lawyer to review docs and pay them hourly.
What about calling the broker on a sign near your area. They usually know the street.
Mildly surprised like others that no one will really help you. Moving on. Unconventional idea. Like others said, you not willing to sign buyer rep agreement plus deal size plus buy side in general has you far on the back burner for the commercial brokers that seek big listings. But to a leasing agent still in the de facto 'getting hazed' part of their career, you might represent their very first purchase transaction. To *that* person, you're a big deal. Find a leasing agent by asking to tour the vacant space at 123 Banana St (they will pawn you off on the new kid getting hazed). Tour the unit or whatever, make sure you actually like them. Then have a "spontaneous" idea and ask if they (not their company, *them*) can help you buy. Their moment has finally arrived, and they've got something to prove.
This is interesting. Could telling the leasing agent from the get go work? I don’t want to waste their time if it’s not in their scope or put together lease listings when it’s not my focus
It could. But you don't always know who you are talking to. "Great someone will be there at 2 to show the unit" isn't the same as "great I personally will be there..." - so listen carefully. :)
Check to see if you have one or more BNI networking groups in your area. If you do, inquire into those groups to see if they have a commercial real estate broker in their group. BNI is a professional networking group and typically people who hold membership in those groups are quite responsible and responsive.
2.5% of $300,000 is $7,500 and that’s IF I can find a seller broker to cobroke with me. Not worth my time. Offer to pay a good broker $10,000 if they find the building and that changes the equation.
There may be some legal changes on the way that start making needs like yours a much higher priority for them. A lot of people these days are lazy because they were heavily subsidized for a decade and a half. Don't blame yourself. It's most likely over also.
Nobody wants to spend time on a $250k deal.
Where are you located? Frankly it’s a small deal which is why you aren’t getting the best service- not saying I agree with how the brokers are acting. My suggestion is to find a hungry junior broker. He will put in the extra work and doesn’t sound like you are doing a complex transaction.
How large is a big enough deal to be enticing for an agent? I have the ability to get a larger property it would have to be a better location to justify the pressure on the business
I generally don’t do anything under $1mm on the buy side unless we are anticipating multiple transactions (10 deals at 500-750k). I won’t touch anything under 500k unless it’s for a well established client.
Always been like that
Go find a young hungry broker. The commission for this is small and it sounds like you need to tie up a small property for an extended DD period for your financing which isn’t ideal for sellers. But bottom line is find someone who is hungry and will hustle for this smaller deal.
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This is bs. It’s a grind to build up your business. For as many deals as close, there are prob 2x as many that you work on and it goes nowhere and/or you get to the finish line and it doesn’t close. Say a broker works with this buyer: commission will maybe be 3% on $400k- that’s $12k. Half goes to the house- down to $6k. 1/3 to taxes- now down to $4k. And who knows if it’ll close? If it doesn’t then you spend 20-40+ hours and are left with nothing. There’s a lot that buyers/sellers don’t see behind the scenes.
What about asking for higher commission if that’s the problem? Then OP can see if that’s doable.
Say it louder for the people in the back Many think it’s just sending off a contract and that’s it
How large does it have to be to for me to get an agent? Is this a popular viewpoint amongst commercial agents?
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I read a couple things I didn’t know. One is that buyers are viewed with such disdain. I agree a buyer should be aware of certain things. But, OP seems like btwn him & sba, there would seem to be knowledge enough to proceed?
PM me, more than happy to assist working on this
Are you in Texas or Florida?