So now I only have a few months to come up with 3 candidates for a 1031 exchange. A commercial real estate broker wants an exclusive. I am thinking no exclusive because I am working with other brokers already. And I ain’t paying their fees if I can buy direct from the sellers. Then I noticed most on Loopnet are listed by brokers anyway - so I might as well use one myself?
Questions:
- Do most commercial real estate owners sell thru brokers?
- What is the normal fees structure, 5% on $5 million is a pretty good payday?
- Do brokers really find properties before they are listed or is that just hogwash?
Any value in an exclusive CRE broker??
Here were our responses the first time you asked this question:
http://www.reiclub.com/forums/index.php/topic,31115.msg144394.html#msg144394
It sounds like you’re getting nervous. Instead of making a mistake, consider the likely outcomes for your position:
- Find a great investment to exchange your property into.
- Sell your property and pay tax at a very favorable 15% capital gains tax rate. Sleep like a baby knowing you now have complete freedom to do what you wish with your net profit and on your own timeframe.
- Desperately jump into the next property your exclusive agent presents because he knows he’s got you and you’re almost out of time anyway. Languish with your bad deal for as long as it takes to get out but within the security of knowing that you saved 15% on taxes.
Pick one.
Once again, it’s common to sign an exclusive/non-compete agreement for a specific property. But as noted in your previous thread, there is usually no benefit to you to sign a general exclusive agreement.
Thanks Equity. Before was a trial run and now I have a real contract to sell. I want to use a consultant to help me evaluate properties but these brokers always try to sell me general exclusive agreements. I am pretty excited, not nervous. I do want to learn from other’s experience because it isn’t every day that a newbie like me gets to buy a $3 to 4 million property.