Need suggestions on how we pick a listing broker - commercial MFH
[{"id": "hilfz73", "text": "Haggle for a better commission since they all come out close.", "replies": [{"id": "hilgt5b", "text": "Yeah, we are doing that. Right now, they are all about the same, and the broker with the highest BOV is willing to drop lower in the case of not hitting a guaranteed minimum.", "replies": [], "depth": 2}, {"id": "hin7z2g", "text": "Haggling a commission not the best way to start out the listing process, and a good indication the seller is inexperienced. Don\u2019t forget, the good brokers are also vetting you. ;)", "replies": [], "depth": 2}], "depth": 1}, {"id": "hiljtcu", "text": "It's more than how much you pay these guys. Commission is important no doubt. But you want a broker you trust. Trust that they are going to work hard to get you the best price. I live in a very competitive area for MF and I hear stories all the time about brokers boxing out other brokers so they can double end the deal. At the end of the day you want everyone to know that its available and that exposure will drive up the price and make the closing terms more competitve.\n\nI would do your own research on your market and see who is the most active. Try to pull some comps and talk to sellers about their experience with the brokerage team you are considering. Think about doing a commission structure that rewards a higher price. \n\nI was a broker in the net-leased sector and now work for a private investor who owns alot of multi-fam and hear these stories a lot.\n\nreach out if you have any questions.", "replies": [], "depth": 1}, {"id": "hilnufm", "text": "I was down on the value of brokers (recovering realtor) until I was on the commercial sell side. Try not to beat them up too much on commission..keep it competitive as most earn their money in the end. It's a very good time to sell and many deals are being sold above the aggressive estimations. \n\nAll things considered I'd go with the group that has the deepest, legitimate buyer pool. After that I'd consider future business and how the broker may go to bat for you on the buy side for your next deal.", "replies": [{"id": "hilp8uc", "text": "How do you determine who has the \u201cdeepest, legitimate buyer pool?\u201d  \n\nWe\u2019ve asked for a breakdown of recent closings vs their projected BOV.", "replies": [{"id": "hilv2r3", "text": "Recent sales track record of properties equal or better than yours in your market or in a similar size market nearby.. Ask about transaction history, sales price premiums achieved, off market sales at or above their BOV targets. All should point to having access to legitimate buyers who can execute especially if they've just sold a few deals. They may have residual buyers who weren't awarded the deal in that transaction or even better they have a seller, now with cash looking to 1031 in a noncompetitive environment.", "replies": [], "depth": 3}, {"id": "hinhmtv", "text": "Based on listing contract time.  In our area, those with a large pool of buyers should get into contract within a matter of a few days for MFH.  By signing a contract 30 days is adequate. If they indeed have buyers they do not mind taking a cut on commission.  Those wanted same commission on both sides are unsure and insist on a longer (e.g. 90 days or 6 months)...\n\nIn all honesty, in our area the residential realtors are more suitable than commercial unless you want to advertise in multiple commercial sites like Costco, Loopnet and their expensive other sites. The residential broker do not have subscription and are reluctant to spend 4 figure on the subscription.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hinz938", "text": "You also need to consider that if you are leasing out large space broker is good idea but for smaller spaces you will loose potential tenents becuse they will not want to pay brokers fees, unless you cover those cost. The broker fees are usualy in thousands  or two months rent. I personaly always avoid looking at spaces that have brokers.", "replies": [], "depth": 1}]