What's the best way of registering potential buyers with a property owner who doesn't have his property listed?
The property owner will sell but hasn't listed the property yet and I won't be the guy he uses. He uses a relative all the time even when I bring him buyers. The last time I dealt with him I made the mistake of thinking he'd pay a standard commission but when it came down to accepting the contract he cut the commission dramatically. 

So I'm having lunch with him next week to talk about his new project. I want to get commission sorted and in writing. This could be a $30 million deal. First, is asking a 3% commission out of line with a transaction of this size? I may have to share this with another agent if one of the buyers I have in mind is interested. Otherwise, I think 2% is fine. But bigger question is do I register my three potential buyers in writing and include the commission rate I want to collect?

What do you guys think?  Thanks!
[{"id": "gwbh06w", "text": "Heh, 3% on $30 million. Yes that's high, and this is coming from a commercial broker. 2% is still pretty high for a deal of that size, but if you can get it...", "replies": [{"id": "gwbilaf", "text": "Where do you suggest I start? And btw, this is a development deal so the pay off will be in tranches paid quarterly over about 18 months.", "replies": [{"id": "gwbmqms", "text": "I'd probably shoot for 1.8% and expect him to offer 1% or less. Asking for a $900k commission on a deal could backfire and could piss off your client. Once you get to $15 million or higher, it's usually around a $300k commission (per side) regardless of the deal size.", "replies": [{"id": "gwmq4h8", "text": "A group recently earned 5% on a $70MM deal in Los Angeles. Seller was very happy to sell at that price and pay that well earned and well deserved commission.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gwbmerp", "text": "I'd be happy with 1% on 30m. I wouldn't pay anywhere near 3% if I were the seller.", "replies": [], "depth": 1}, {"id": "gwbp90v", "text": "I can tell you right now the asking commission is ridiculously overcharged. You bring a listing contract signed filled and leave commission % and asking price info blank. In your case if you have not signed an agreement with your clients you need to ask them to pay you or from seller. At 30M it is likely to be a flat fee. In San Francisco area it is likely a fraction of a 1% for very top broker/RE attorney.  If he wants to use his relative you ask about buyer agent referral and leave a form for him to sign. You need to have their finances all check out. If he resists to commit singing adios.", "replies": [{"id": "gwc6h4o", "text": "So for clarification, this is a subdivision sale to an institutional investor looking for a build to rent community. They'll buy all 100 houses, closing in 5-8 home increments because that's as fast as the builder can complete them, weather permitting. This builder sells subdivisions one home at a time and pays a 5% commission on each sale - the listing agent gets 2% on every house and selling agents get 3% per sale. If the builder pays 5% on each sale normally why would he not do 3% on a bulk transaction? The 5% commission is built into his modeling. 3% would be saving him money AND he has a guaranteed sale of 100 houses. \n\nI get what everyone is saying and I agree that something less than 3% is reasonable.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gwczi6j", "text": "I'm a little unclear on what sort of deal you're brokering here. Is this an approved lot deal, improved lots, finished homes to a rental company, or something else? All of those situations command different commissions. \n\nAt $300k/unit, I'm going to assume it's a finished home transaction from a builder to a rental company. So what does this deal look like for the builder? Are they selling at their normal margins? Do they make target margins on base pricing or is the profit all in options? I don't imagine a rental company is going to be optioning a lot of sun room extensions or trey ceilings in their houses. And in my experience, the rental company is going to expect a price discount in exchange for buying in bulk. Frankly, with the way material and labor prices are going, I don't know many build to rent projects that pencil right now. If the builder isn't advertising current all-in pricing, it's hard to imagine the rental company knows what this deal will cost (let along accounting for future cost increases).\n\nThese sorts of deals require a high level of sophistication from brokers. You may know this stuff or you may not. Feel deee to ask questions, I know there's some people on here very familiar with build to rent.", "replies": [{"id": "gwd858v", "text": "Finished home sold when completed. If the builder can do 10 houses a month, we close 10 houses a month. No discount because of (1) the market and (2) unpredictable material prices, ie, lumber. As a matter of fact, the builder has already said that if lumber prices continue to go up each batch of 10 might have price increases. The investor has already done a few deals like this with other builders. They have no choice but to pay retail prices because if they don't someone else will, including retail customers. \n\nI just closed a 72 house deal with one investor and have a 16 unit deal about to go UC in a day or two. With both of those deals the sellers had representation. The larger deal I got 1/2 percent. On the smaller deal I'm getting 1.5%. On the one I'm talking about, I'd be the builder's \"LA\" sort of. I have three investors (maybe 4) looking for this kind of deal so it will go to one of them.  One investor is mine directly and the other two have representation.", "replies": [{"id": "gwdv113", "text": "I don't know if I agree with some of your premises, but I'll just stick to the commission question. If your buyer is truly paying market price and full margins for the builder, there's no reason to not aim for a large commission. If the builder offers 5% for representation on both sides, they have internal figures of what their effective commission rate is. That might be closer to 4%, and is baked into their net margin/PTI calculations. I'd aim for half that rate, with the selling point being that you're giving the builder an extra 2% margin in an unpredictable market (more wiggle room for price fluctuations).  And it's up to you how to split that with the buyer's rep. \n\nAs someone else pointed out, I'd let the seller throw out the first number but your value is commensurate  with the quality of the deal. Gotta know how good the deal is for both parties.", "replies": [{"id": "gwf3dxo", "text": "I agree. I'm having lunch with the builder next week - and we've known each other for the last 8 years or so - so I think we'll be able to find something mutually acceptable. I appreciate all the great advice.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gwmpqo1", "text": "In California I use a  \"one party show\" agreement. It lays out the price and commission and I have the seller sign it. If the seller doesn't sign, I don't bring my buyer. If a seller was only going to pay me 1% on a $30M deal, I would take my buyer elsewhere.", "replies": [], "depth": 1}, {"id": "gwpj4qj", "text": "What market are you in? Agreed that it\u2019s typically 1% for institutional deals over $20m.", "replies": [], "depth": 1}]