Seller's not willing to pay the commission?????
OK. So you've been working with a good commercial real estate broker. You trust them. You seem to have a good handle on real estate and find an investment where the seller is not willing to pay your broker's commission. What to do?
Remember, everything is negotiable, including who pays your broker's commission. It's not something to run from. It's just the sellers first negotiating tactic. So negotiate. Whatever the local commission rate is for your area, the seller's broker should split it with the buyer's broker.
Nevertheless, there may be an absolute refusal on part of the seller. Well, what does that mean to you? If you have become real estate savy, you may do well on your own. Yet, the average business owner is focused on their business, not the business of real estate.
As such, you might consider paying for your broker's real estate expertise by paying their commission rate. It's important to realize your broker has the ability to analyze not only your particular investment, but the local market as well. Analyzing available options, understanding the market and economic outlook will support negotiating the best possible transaction that brings value to you, the business owner.
Labels: broker buyer representation, Commercial Real Estate, Commissions, Seller


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