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Hi there
Last year we had a commercial property listed with a realtor. The listing expired in sept 2007 with no sales. So fast forward to last week. I get a call from a different realtor who knew our old one and said he had a client who was looking for a property like what we had for sale. He wanted to know if we were still interested in selling. We said yes.
Today the prospective buyer and his realtor came by and looked at the property. He seemed interested and said it would definately work for him.
My question is ; if he does make an offer and we accept ; what about commissions? The price we had it listed last year is higher of course than we expect to sell for. Who would we pay commissions to? We do not have it listed with anyone.
Also we have a tenant living in the property now. Her lease expires in Jan. We were not going to renew the lease anyhow, and we told the buyer that. If we sold mid lease, would we jsut change the names on the lease ; she is a DSS client.
Your listing expired long ago, so you owe no loyalty to your previous realtor. If you decide to both use the realtor that is coming by, you should negotiate a better commission, since he would be representing both parties. I wouldn't be in any hurry to lower the price from what it was listed for last year. Let them do the offering, they will try to under cut you anyway, so start where you were.
I would feel out the buyer as to his immediate needs, i.e, does he want to move in right away, or will he work with the lessee until January. You might have to buy the renter out of the lease.
ask yourself who is doing the work? if the agent is going to do both sides, then you owe him or her the commission for both sides, if you are capable of doing your own, then 1/2 is fine - dont cut your nose off to spite your face, think twice if you want or can take this on.... if so then by all means, if not, then sell it and be done and pay the comm
why not pay the realtor that is bringing a hopeful buyer, a commission, ( maybe half the norm?)and then get you a real estate attorney to look over the contract for you? you will save a little then...you could always send the other realtor a thnka you with a NICE diinner or store, or gas, gift card as a thanks for thinking of me
The Realtor® came and showed your property without asking you to sign a commission agreement for that particular customer? Well, there are three things that could be happening...he's getting paid a commission from the buyer, which is not unusual in a commercial property, or the Realtor® is VERY trusting, or the Realtor® is a fool.
As for the lease, generally the lease survives the sale and it would be up to the new owner & tenant to renew the lease. The other possibility is to buy the tenant out of their lease.
Thanks for all the suggesstions. Nope ; we did not sign anything on Tuesday. There were two realtors there ; the one that had called me and the realtor for the buyer plus the buyers.
Yeah, well, in a perfect world that is not when the question is supposed to come up. It's *supposed* to clarified before the showing so everyone knows where they stand and know how to write the offer up to begin with. Technically you would owe them nothing. I'm sure you aren't thinking that way and I fully respect you for it but it's a fool of a Realtor® that does not clear that up before showing the property. Then again, like I said, with commercial property it is not unusual for the buyer to be paying the fee.
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