Brokers: trouble with getting a potential client to sign a listing agreement. Thoughts?
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[{"id": "evkktl6", "text": "Take the 3 month period and prove yourself.  Signing a 1 year exclusive is very risk for the client.", "replies": [{"id": "evl0e5u", "text": "3 month listing agreement is seen all the time. 1 year listing agreement is rare even with long term clients. Don't know what your boss is thinking. Must be crushing 8 figures + regularly.", "replies": [], "depth": 2}], "depth": 1}, {"id": "evklw4r", "text": "If he wont sign a year you dont really have a lot of options. \n\nA 3 month deal is bad for you though. Commercial takes much longer to lease/sell. You will likely do alot of work listing and advertising the property and the listing will expire before a tenant is found. That's why your broker doesnt want to take 3 month listings. \n\nI would try to compromise with the guy. See if he will do a 6 month listing at least. Show him some comps of other similar properties and how long they took to find a tenant etc.", "replies": [{"id": "evm8ez2", "text": "Most contracts have a 30 day out anyway, right?", "replies": [{"id": "evn2zjo", "text": "No not that I have ever signed with anyone.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "evkqtyc", "text": "In your shoes with a couple extra years under my belt. In my experience the whale clients are always going to shoot for a shorter listing agreement. I\u2019ve taken a number of three month listing agreements which have turned into long-term relationships because we kept extending for additional periods.\n\nI\u2019d take this as an opportunity to prove yourself. While there is risk given the deal cycle of CRE is longer, you\u2019re not at a point where you can turn down opportunities like this. Your boss may see it differently as your risk is really in potentially wasted time, but his is in potentially wasted funds from marketing the site.\n\nAs an aside, I recently picked up an extremely large listing on a short term basis. The ownership had interviewed our competitors first and got all the way to a listing agreement with them, but our competitors insisted on a one year agreement. This did not sit well with the ownership and they came to us, where we settled on a much shorter time frame. I still remember my partner and I wondering/laughing at how our competitor stood firm at the one year mark and lost this giant account.", "replies": [], "depth": 1}, {"id": "evkr134", "text": "Not a lot you can do unfortunately. I used to stick hard and fast to 12 month agreements but have since backed off and typically sign 6 month agreements.\n\nDuring the 3 month period do your level best to provide value, make sure you do more than stick it on the Costar and actually go out and source new leads. Make sure you provide the LL with lists of upcoming lease expiration in competing buildings and a plan to pull tenants out of accordingly. Make sure you keep a tight list of tenants in the market so he knows your tracking all the potential deals to fill his buildings (equally as important when an occupier leases space elsewhere be sure to find out why they didnt opt for your listing and communicate that to the landlord succinctly). If you work for a big brokerage house get the marketing department churning WAY before the listing agreement starts; i.e. if you are negotiating a listing agreement now that will likely start in September for example you should start getting your postcards, mail lists, property brochures, broker outreach program etc prepared TODAY so you dont waste any of your 3 month period fucking around with graphics on a postcard. \n\nIf you show value beyond expectations the agreement will be extended. The time, effort and energy associated with firing/interviewing/hiring a new listing team works in your favor, make his decision easy and you should have a problem. \n\nWith that said you want to protect yourself. Make sure your listing agreement is water tight when it comes to exclusions etc. Keep detailed records of those tenants and brokers with whom you have showed or discussed the listing with. If it turns out that you get fired in 90 days you want to be able to turn in a detailed and legitimate exclusion list should any of those tenants sign a lease in the near-mid future. \n\nDo you have any clients who would be a good fit for the vacancy? since you know what the LLs rent roll you know his upcoming availability... start planning accordingly. \n\nDoes the guy who sits next to you have a client that would be a good fit for one of the vacancies? I would be having confidential and generic conversations NOW about how you could potentially help solve his requirement with an upcoming listing (\"i just need to button up my listing agreement then i can disclose\"). \n\n3 months is not ideal but if your new in the business this sounds like a great opportunity to prove yourself. Nothing better than sign in the ground. \n\n&amp;#x200B;\n\nGood luck!", "replies": [], "depth": 1}, {"id": "evktuf0", "text": "Suggest to him that 3 months isn't enough time to prove yourself.  Point to the comps that demonstrate how many days on market it takes to move like-sized properties.   Suggest that you meet in the middle and do a 6 month listing.   Then go bust your ass and deliver.", "replies": [], "depth": 1}, {"id": "evkywn7", "text": "Agree to a 3 month listing agreement with a carve out for the landlord covering certain brokerage expenses related to the assignment which you feel could be justified if he does not extend the assignment.", "replies": [], "depth": 1}, {"id": "evl9dpr", "text": "Like others said. Try for 6mo.; If no, take the 3mo. listing that was offered. \n\n**Regardless**, insert language that upon expiration of the initial term, the listing is automatically extended on a month-to-month basis. Listing to be terminated with 20 days written-notice by either LL or Broker. \n\nInclude language that within 3 days of receipt of said written cancellation notice, Broker may provide written notice of \"Registered Persons\" which will included Entity Name and Type of transaction. If transaction registered under the \"Registered Persons\" list occurs within 180 days of expiration of listing, terms of the listing are still in full force and effect with Broker due a commission in accordance with original listing agreement.", "replies": [{"id": "evpmfgj", "text": "&gt; Regardless, insert language that upon expiration of the initial term, the listing is automatically extended on a month-to-month basis. \n\nI'm pretty sure that isn't legal in some states.  Great idea, just wanted to point that out", "replies": [], "depth": 2}], "depth": 1}, {"id": "evmiu1o", "text": "Take the three months and add a clause that renews the contract every three months unless the LL ends the agreement in writing.   If you market it effectively and do everything you can to get it moved the LL will have no reason to end the contract.", "replies": [], "depth": 1}, {"id": "evn0a1l", "text": "I\u2019d take the 3 months. Do what you can to prove yourself in that time. Stay close to the client. \n\nAnd be prepared for lots more bipolar outbursts in your new career. Seems this business attracts some interesting characters. Good luck!", "replies": [], "depth": 1}, {"id": "evn3qm0", "text": "If you're willing to really work it, take the 3 and get a protection period for what you bring forth. If you really believe you can prove yourself with either amazing effort or results you'll renew. OR, go try to find another one willing to sign up for 12. Personally, if it were a client I wanted I'd shoot for 6 but be willing to back to 3.", "replies": [], "depth": 1}]