Is this Marcus &amp; Millichap agent toying with me regarding commissions?
 I'm a CRE agent and I've been doing this in Texas for 10 years. I'm  working an offer with my client to purchase a listing being represented  by M&amp;M for just a bit over $1M. I've had the agent dodge my question twice regarding cooperating broker fee but he finally responded telling me the total fee is 2.50%, so it's 1.25% to me. I understand fees are negotiable and all that, but I don't trust M&amp;M agents as far as I  can throw them, and I want to make sure there isn't some thing they do to get paid a separate fee that's more in line with market so that it's  not shared with the cooperating broker. I've never seen such a low  commission at this price point. 
[{"id": "iursnll", "text": "I mean does he have to share commission at all?", "replies": [{"id": "iurvdxn", "text": "Of course he doesn't, but that's not the point of this post.", "replies": [{"id": "iusug1i", "text": "You don\u2019t sound like you have your clients best interest in mind which makes me quite sad", "replies": [{"id": "iut0wvh", "text": "if your clients best interest include you not getting paid then I'd get new clients", "replies": [{"id": "iut7n6z", "text": "If you\u2019re helping your client buy something you charge them a flat fee. If you\u2019re selling something for them then you charge a commission based fee. \n\nOtherwise you\u2019re incentivize to make your client pay more for the property", "replies": [{"id": "iuu59ac", "text": "Don\u2019t know where you are at but that\u2019s not typically how it works in the US. Seller agrees to pay x% then listing broker and buyers broker split the commission.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iursvy4", "text": "I don't know if there is any law in Texas (I'm thinking not) that an agent must split the commission in half. I know in NJ you don't have to as long as everyone coop broker is offered the same portion. i. e. I can't offer you 1% and someone else 2%\nEdit: so what I'm saying is they may be able to offer you whatever they want to. Meanwhile they may actually have a low commission and giving you half.", "replies": [{"id": "iurvafd", "text": "No, there is not a law like that, but he is saying this is half the fee.", "replies": [{"id": "ius1bo4", "text": "So it doesn't really matter if it's half or not. The question is are you willing to work on the deal with that fee?", "replies": [], "depth": 3}, {"id": "iushy7i", "text": "Put him on the spot and tell him the deal isn\u2019t getting done for anything less than 2% to the buyers rep aka you. Tell him he can take 0.5% if thats truly the listed % fee for this deal. I\u2019m sure if he\u2019s negotiating that small of a fee the relationship with the seller is more important to him than the fee.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iuru6dy", "text": "they suck and they play their own little game. i avoid them at all cost but if i have to deal with them i know i\u2019m dealing w a sneaky weasel type agent typically", "replies": [], "depth": 1}, {"id": "iurvc5p", "text": "If the property was advertised on a MLS there are usually rules saying that the buyers commission must be stated in the listing.  \nI would recommend adding your requested commission to the purchase offer and let the seller make a counter rather than leaving it in the hands of the other broker.", "replies": [{"id": "iuuft5n", "text": "Co-op commissions are not on CoStar", "replies": [], "depth": 2}], "depth": 1}, {"id": "iurvkql", "text": "When you submit the LOI put the commision you want in there. They legally have to present tht to their client. You should with out a doubt have a sperate commission agreement between you and M&amp;M. You could also submit the offer two ways. \n\ni.e. 1 million with a commission to be paid by seller to buyers' broker of $100K \n\nor 900K with no commission due and just get it from the buyer.\n\n&amp;#x200B;\n\nIdeally get from sellers broker but use the above devices.", "replies": [{"id": "iuuxmq2", "text": "This, I just write my commission in the offer or LOI. My client sees it and the seller will eventually have to see it.\n\nIf you get pushback from the selling agent tell them that's the commission your buyer feels you should be paid and won't take any less with this offer.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iurwlm3", "text": "If your concern is that the commission is actually higher than what the broker is quoting you, then I would have them sign a cooperating broker agreement that you would be getting 50% of the total commission earned rather than a specific percentage. If they try to cheat you, you'll know when the settlement sheet is distributed.", "replies": [{"id": "iuscujz", "text": "This is the best answer.", "replies": [], "depth": 2}, {"id": "iushqy6", "text": "Unless we are suspecting something off the HUD/CD?", "replies": [{"id": "iuui7g6", "text": "As in a commission that's paid outside of closing from seller to listing agent? Since it's in the seller's best interest to have the broker co-op a fee to attract more buyers, I highly doubt this is happening. And if the seller *is* willing to go out of their way to pay a separate fee to the listing agent, then you're SOL.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iurx2lh", "text": "Marcus agents are weasels. I worked for them in TX", "replies": [], "depth": 1}, {"id": "ius3trb", "text": "Investment sales agents in Atlanta don\u2019t even offer a buyer side commission to the broker. They tell you to get your buyer to pay your commission. (This only happens with M&amp;M and Matthews \ud83e\udd22) \n\nI refuse to cooperate with anyone from either company at this point.", "replies": [{"id": "iusubzj", "text": "If you\u2019re working for a buyer, you charge the buyer a fee. How could you possibly have your clients best interest in mind if you get paid more the more they pay for the property. The selling agent gets paid by the seller, and the buyers agent gets paid by the buyer. \n\nI would never use a buyers agent that gets paid a % of final sale price.", "replies": [{"id": "iut2lbw", "text": "M&amp;M broker exposes himself\u2026 this is probably the broker on the other side of the OP\u2019s deal.\nKick rocks, buddy.", "replies": [{"id": "iut9e6s", "text": "I don\u2019t even live in America lol ive never heard on M&amp;M other than the candy and the rapper. \n\nJust seems like all agents involved here aren\u2019t ideal", "replies": [{"id": "iuu7t2a", "text": "So what I\u2019m hearing is you have no idea what you\u2019re jawing about?", "replies": [{"id": "iuu9jbg", "text": "If you read the other comments you would\u2019ve learnt that the custom is dont differently in different countries. Im not even in the same hemisphere", "replies": [{"id": "iuw048b", "text": "Then why contribute?", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ius4ae1", "text": "The 2.5% fee is light for that price point. Market is usually around 4% total for deals from $1-3M (Sometimes up to $5M). Anything from $3m up is total 3%. \n\nIt\u2019s not unheard of to see such thin fees on smaller price point deals. Seller might be a hard ass when it comes to negotiating fees with their listing broker, especially if they feed multiple deals to this same broker on a continuous basis. If you haven\u2019t seen such a small fee in the 10 years you\u2019ve been working in CRE, I dnno what to say. Fees have thinned out over the years due to competition. \n\nIf you\u2019re not content with the fee they\u2019re offering, incorporate your desired co-op fee amount into the offer. Explain to your client why you\u2019ve done so.\n\nIf you guys are offering a competitive price, it\u2019d be hard for seller not to consider paying the extra 75bps in fee. \n\nYour other option is to have your client, buyer, pay you the difference in fee. \n\nNot sure what you\u2019re trying to get out of your post. Play ball and be a broker.\n\nYour job is to make your client happy. If it means taking a small hit in fee, then so be it. Nature of the game.", "replies": [], "depth": 1}, {"id": "ius61rg", "text": "They are notorious for this, but in defense of the industry sometimes agents agree to smaller fees in order to get the listing.  I would add language to your offer that says \u201c50% of the total commission payable at closing\u201d so that they can\u2019t be sneaky and also so the seller sees it.", "replies": [{"id": "iusukg0", "text": "You\u2019d think someone who\u2019s been an agent for 10 years would be able to navigate this correctly\u2026", "replies": [{"id": "iusx8uo", "text": "Truth", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ius8589", "text": "Shops that do a ton of NNN deals are increasingly doing reduced fees or zero fees to buyer side to stay competitive and get listings. It\u2019s frustrating, but just part of the business. You can always negotiate in a fee, have your buyer pay a fee or get an agreement stating your fee will be 50% of the total broker fee to make sure they aren\u2019t giving you less than half if that\u2019s your concern.\n\nIt\u2019s not fun, but I\u2019ve had to take smaller or reduced fees to get deals done, but as they say it\u2019s better to have X% of something than 100% of nothing and hopefully your clients or future deals will make up for it.", "replies": [], "depth": 1}, {"id": "iusnpqe", "text": "hint\\* write in the offer that the buy side representation fee is 50% of the total fee agreed upon between the listing agent and the seller.", "replies": [{"id": "iuuqblq", "text": "This should be so obvious.", "replies": [{"id": "iux86im", "text": "I agree but it is not for some reason", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iusr5le", "text": "Doesn't your state require a signed cooperating brokers agreement stipulating the distribution of commission either in straight dollar terms or as a percentage of selling price?", "replies": [{"id": "iuuggux", "text": "Dunno about TX but I can tell you CO doesn't have that.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iustd51", "text": "You shouldn\u2019t be getting paid a commission if you\u2019re working for the buyer\u2026 you need to charge the buyer a flat rate/fee for helping them purchase something. The selling agent gets paid by the seller, you get paid by the buyer. \n\nIf an agent was helping buy something and they were getting paid commission based on sale price, how could you possibly believe the agent is helping you at all. You don\u2019t have your clients best interest in mind. \n\nThis is what goes agents a bad reputation \n\nI would never use OP as a buyers or selling agent after reading this", "replies": [{"id": "iuth1wq", "text": "Are you even in real estate?", "replies": [{"id": "iutpbu2", "text": "Yeah I work for a multi billion dollar commercial RE firm. I dont work in America tho so maybe just different customs idk", "replies": [{"id": "iuuq9u8", "text": "Obviously you are speaking on something that you\u2019re not suitably qualified to be. Maybe just stay out of it.", "replies": [{"id": "iuuugo3", "text": "You sound like a really lovely person", "replies": [{"id": "iuuvkhn", "text": "I don\u2019t trust your judgment at all.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "iutrigc", "text": "It's customary in the United States for the selling broker to pay a portion of the fee to the buyer's broker. It encourages buyer brokers to bring them business and gives the selling broker more activity and more competition towards their listings, which in turn, can get the selling broker the highest and best price. However, everything is negotiable and it's not uncommon for buyers to cover a portion or entirety of their brokers fee. \n\nRegarding conflict of interest, it's a good point, and hypothetically, makes sense. However, any good buyer's broker is getting the best deal for their client. Any GOOD broker is willing to take a small haircut to get their client the best deal possible.\n\nIf you're a buyer and are worried that your broker isn't working in your best interest over a few basis points, you probably should get a new broker.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iut12vc", "text": "Your right not to trust them. Tried to line up a 13M deal and was told my buyer would have to pay my share so zero comm allocated to my broker.", "replies": [], "depth": 1}, {"id": "iut13pk", "text": "just put what you want in the offer and let them figure it out.  Assuming your client will stand behind you anyways, if not then probably sol", "replies": [], "depth": 1}, {"id": "iut408k", "text": "Millicrap", "replies": [], "depth": 1}, {"id": "iut9ez8", "text": "M&amp;M really is full of snakes", "replies": [], "depth": 1}, {"id": "iutrwo0", "text": "Contracts brother.", "replies": [], "depth": 1}, {"id": "iuu4dp2", "text": "My experience with M&amp;M...you're lucky they are willing to even pay that.", "replies": [], "depth": 1}, {"id": "iuuhoyg", "text": "How have you been a strictly commercial broker for 10 years and not know how to handle this?\n\nSecond, on the multifamily side it's pretty standard for the listing broker at any firm to not offer any co-op.  CW, CBRE, JLL, Berkadia, Newmark, and MM.", "replies": [], "depth": 1}, {"id": "iuuifdb", "text": "they always lie and always try to screw the buyer\u2019s broker. had it happen 4x before i drew a line in the sand. broker flat out told me the corporation has stated that they never care about buyer\u2019s brokers. this is why they have the reputation as the worst company in CRE.", "replies": [], "depth": 1}, {"id": "iuuo5v9", "text": "Marcus loves to fuck people - 99% sure they\u2019re taking more.", "replies": [], "depth": 1}, {"id": "izcxz0b", "text": "M&amp;M is absolute dogshit", "replies": [], "depth": 1}]