I'm about to start looking for a property to do a 1031e into a larger multi-family. What's the thinking around working with one broker vs multiple brokers as a buyer? I've heard it's limiting to sign an exclusivity agreement with one broker. But I've also heard that if you are working with more than one broker, it can end up hurting you because brokers don't want to share the commission and so won't take your offer to the seller as a 'serious' offer. It seems like I should have as many people hustling for the deal as possible. Would love your thoughts.
Brokers and agents work on commission. If you work with multiple people but only intend to buy one property, you're asking the people who don't close the deal to work for free.
I have a very clear rule when I start working with a client. You can fire me for any reason. I don't mind. But you can't cheat on me. If I find that you're working with another broker, I immediately drop you as a client, forever.
You going to pay all of these brokers? If not, then why would someone hustle and work for you for free?
The buying agent you chose to work and represent you should be one that you know will work the hardest for you and find you the right deals in the market. If at any point you feel that you have not been serviced adequately and that you really need the help of multiple agents to find your deal then your qualifications are not specific enough so the deal pool is too broad or you have not interviewed the right agent for the job.
Unfortunately it might be both.
Many realtors know each other. When they found out one client is working with their friends, often they decline to work with that person as not trust worthy. If agent 1 show you the property and agent 2 wrote the contract. Chances you need to compensate agent 1.
This is not recommended practice.
@Russell Brazil although in my limited experince with larger Multi.. I have brokered a few of them up to 5 million.
commerical brokers dont share like resi brokers.
they get a listing it goes to their personal buyer list first.. for obvious reasons huge double end commissions.
if that no work.. they share in their office and share with one of their associate brokers.
That no work they put it on loop net or coast star or MLS>.
So when i had a buyer.. I had a loyal one.. but i had to go and knock on doors of the commercial brokers to let me see their listings. And you better have your commission demand in writing in the original contract you dont they will cut you out in a heart beat.. that was my experience.
So this buyer can either just shop all the different brokers.. or if they want their own broker be loyal to them and that is what they are going to do to find the deal.. they might have to cold call too.
My buyer on the 5 mil one gets cold called every quarter by some commercial broker.
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