Commercial Broker pocket listing and Agency

[James Kojo]

Is it generally understood that in-order to get a pocket listing from a *commercial* multi-family broker, you will have that same broker represent both sides of the transaction (i.e. there is no additional "buying agent" involved?)

The same question asked a slightly different way: do you ever get off-market listings through a buying agent that doesn't work in the same brokerage agency as the listing broker?

To keep the discussion focused, please assume: I always use buying agents. You may assume that and I'm fully aware of the advantages of using different representation for both sides of the transactions, as well the potential pitfalls of double-ending and dual-agency.

Thanks!

James

[Joel Owens]

It varies. I have built up thousands of retail and multifamily contacts over the years to search for properties for my clients.

Some commercial brokerages like to do volume and work for peanuts. So they take a below market commission and then after giving half to their brokerage the only way they make any kind of money is to double end it. It's actually a disservice to the seller and poor negotiating skills of the listing company.

These larger companies often have very large overhead costs and must keep transacting to survive.

I run a different model at my firm. I do my investments and then work with clients one on one. I locate off market property but do not typically list it. I bring the buyer and then usually make a higher amount that way. Since I am the principal broker I am not giving away half to some company I am hanging my license with.

I am on internal systems for first looks because the brokerages know I screen my buyers upfront and look at financials. As you can imagine the low fee listing companies want easy buyers and to do volume to make any kind of return.