Brokering Off Market properties for Investors and Builders

[Rich Hupper]

Hi fellow agents and brokers.

Most of my work is finding off market properties for myself or investors. When cold calling an off market decision maker I let them know I have a buyer for their property and ask if we can set up a time to see it. 

I do not ask for a fee from the buyer or the seller in order to keep the net high for the seller and the costs low for the buyer. Trying to keep things as simple as possible. In full disclosure to both parties I let them know I am compensated at the end when the final product is realized and brought to market.

If the deal comes together I always make sure the sellers have their own attorney in the mix to hold deposits and represent them on the sale.

What I am finding is sellers are hiring their own brokers and paying them commissions for doing next to nothing. 

If the seller has attorney counsel why would they feel compelled to pay a commission to a broker for doing nothing when I have already produced a ready willing and qualified buyer that can close quickly and keep the transaction very straight forward?

I had one seller inject a seller side broker and pay them 35k commission for doing nothing except holding deposits. 

What am I missing here?

I position myself as a facilitator for both parties. My investor buyers are fine with that. Perhaps the sellers are not?

Should I be looking for a fee from the buyers when a seller injects a broker into the deal, that does nothing?

Thank you

[Rich Hupper]

Quote from @Aaron Lawrence:

Could be that the sellers are still suspicious you have some ulterior motive or bias (not saying you do). 

Have you considered charging some small fee to both sides to further prove to the seller you're not in the business of taking advantage of them? If I were in the seller's shoes, it would be reasonable to think "no one works for free... what's this guy's angle" and then go out and hire my own agent.

Could be % or flat. The main idea is maybe you could head these inefficiencies off and proactively build trust by putting skin in the game by formalizing your relationships and position in the deal. 

 You could probably be right with this. Charge both sides a small fee and just act in the facilitator capacity I already do. 

I do disclose to the seller I make money when the final product is done that is why I am not charging a fee to either side. However perhaps some sellers feel a bit of comfort having a broker on "their side".