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Selling industrial building real estate agent norms question

Milacron

Milacron

Administrator
Staff member
Joined
Dec 15, 2000
Location
SC, USA
I have my 16,500 sq ft industrial building listed with CB Richard Ellis (national firm) for $565,000 for about 4 months now. Contract is 6% commission if CBRE sells or shared commission of 1/2 of 7% is another agent brings in the buyer. Recently I met an agent with Weichert Realty who used to be in industry and is excited about what a "deal" my building is, such that he wants to do an "email blast" to advertise the building.

He then says he needs permission from CBRE agent to do so, so I give her heads up he will be contacting but I'm ok with it. To me surprise she fires back email that it is not ok and "borderlines on unethical behavior" !

My take on it is, hey whatever it takes to sell the damn thing and what the heck is the difference in another agent advertising it a bit on his own versus him just by chance having a customer that approaches him needing such a space ? What am I missing here...WTF is "borderline unethical" about this ?

(especially considering he was going to ask permission first, and yet he could have gone ahead and "done it" without permission in which case highly unlikely she would ever have found out)

http://looplink.natl.cbre.com/xNet/...&UOMMoneyCurrency=&RentPer=PY&SRID=3151319618
 
Sounds like to me your CBRE agent doesn't want to split the significant commission. Yet by the contract (and virtually all real estate contracts I have seen), other realtors have the right to sell the property.

Tell the guy if he doesn't want to split the commish, then sell the building first!
 
cnctoolcat said:
Sounds like to me your CBRE agent doesn't want to split the significant commission. Yet by the contract (and virtually all real estate contracts I have seen), other realtors have the right to sell the property.
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I suppose that is it, but in this difficult commercial real estate market it is surprising to me that she would take the chance of getting 3.5% versus 0% if she doesn't sell it by November 2013 when the contract runs out...which she most likely won't.
 
I don't understand the 6% changing to 7% if some other realtor sells it.

New one one me.

Tell original agent to go pound sand.

Too many realtors out of work to have to put up with crap
 
digger doug said:
I don't understand the 6% changing to 7% if some other realtor sells it.
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New to me too, but makes perfect sense....that way each broker gets 3.5% instead of 3%. More typical around here is 10% commission on commercial real estate under a million bucks, so 6 and 7 sounded like good numbers to me.
 
Milacron said:
I suppose that is it, but in this difficult commercial real estate market it is surprising to me that she would take the chance of getting 3.5% versus 0% if she doesn't sell it by November 2013 when the contract runs out...which she most likely won't.
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Not sure if this still applies, but DO NOT let the current RE agent know of ANY possible buyer... Reason is that IF the guy that looked at the building before your contract runs out, and then ends up buying it AFTER the contract expires... the original agent WILL GET PART OF THE comish...
 
Your agent needs to explain herself in greater detail. I'd be turning up the heat on her butt to find out 'zactly what her problem is with the other realtor, and whether she has done, or plans to do, any "e-mail blasts".

"GIT 'ER SOLD!!!"


Rex
 
If your listing agreement with CBRE is "exclusive", which most are, then all advertising should go through them. If it's only "listed" but not exclusive then you can have other adjects try to sell it too.

Alan
 
bjorn toulouse said:
Your agent needs to explain herself in greater detail. I'd be turning up the heat on her butt to find out 'zactly what her problem is with the other realtor, and whether she has done, or plans to do, any "e-mail blasts".
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I talked to her on the phone a few minutes ago and my impression she is miffed that the agent was dealing directly with me rather than going thru her from the get go. But then he only knew about my building in the first place because we knew each other for other dealings. Also have the impression she thinks in terms of herself being big fry with large commercial brokerage and he being small fry with residential brokerage. Politics I guess.
 
adh2000 said:
If your listing agreement with CBRE is "exclusive", which most are, then all advertising should go through them. If it's only "listed" but not exclusive then you can have other adjects try to sell it too.
Click to expand...
Good point...I looked just now and sure enough it is "exclusive". Still mystifies me why one agent might object to free advertising by another agent of their "exclusive" listing however.
 
I think it is one of there ethics rules. You are not supposed to advertise other peeoples listing without their approval.

I could get my licence one day and the next be advertising everything in town. It takes years to build up listing and buyer lists..
 
Wow, looks like a great spot too! The wife and I are selling the house up here in New England in a couple years to migrate to SC to get away from these long winters. We are looking in the area of Florence though, otherwise I'd consider this property!!!! :D
 
Seems like this might be a good time to have a conversation with her to find out what she's done so far to promote your building. Has she shown it at all? Advertised in newspapers in Charleston and/or Savannah. Etc Etc. Posting it on a webpage at a cost of maybe 50 cents a month doesn't qualify as doing her due diligence to promote your building. Not saying that's all she's done, but if she's determined to be the sole source of promotion, then I'd want to know what she's doing to fulfill that obligation.

I agree the building is a hell of a deal. It'd be tough to find the equivalent around here for $50/sq ft, and if you did it'd be on 1.5 to 2 acres rather than 10.
 
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