A real estate agent I know was the listing agent for a building sold a year ago. I was neither the buyer nor seller. He called me for a different matter and I asked him for contact info of the current owner of that building. He called the current owner and came back with a confidentiality and non-circumvention agreement for me to sign. He's going to take a cut of this transaction which I guess will be priced into the sales price. Did I make a stupid move by essentially adding a middleman? Is it customary for him to take a lesser than normal commission since he hasn't done anything?
I don't think it sounds like he hasn't done anything. Quite the opposite to me it sounds like he is brokering a real estate deal, putting buyer and seller together. This is how things were done for 100 years before the Internet, and is how most commercial deals are done.
You brought him in...you engaged his services ...why would you not want to pay him?
Real estate agents connect buyers with sellers. I already found the property. The seller didn't have it listed. My impromptu mention of the property is now going to cost me a $50k commission. It's like mentioning a property I want to a wholeseller and he puts it under contract in front of me. Right?
How much was the agent actually involved? Did they handle all the contracts? Did they arrange for the inspections? Did they represent you in anyway towards the seller beyond getting you a phone number? You should have negotiated their financial compensation before you signed any piece of paper and discussed the situation with your attorneys or financial advisers.If all they did was give you a phone number and literally nothing else,you wasted a lot of profit for what you could have done on your own with a little legwork.If the deal isn't concluded yet,try negotiating with them before escrow closes.
We are at the very beginning. I have signed nothing and we haven't discussed commission. I don't want or need his help. I have been presented with a Non-Circumvention agreement that I don't really want to sign. I may call the seller and get his take before I proceed.
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