Closing multi-million peso deals can be a challenging and rewarding experience, but it is important to remember that the chances of success are often quite small. There is a lot of competition in the real estate industry, and it is not uncommon for sellers and lessees to try to minimize the commission paid to brokers. In these situations, it is important to be diligent and protect your own interests, while still working to ensure that your clients are happy and satisfied with the services you provide. Listen to one of a veteran broker’s stories:
I was involved in a real estate transaction where a reputable organization was looking to rent a new building. As an experienced broker, I was hired to help find a suitable property that met the organization’s specific requirements. These included the building being at least 12 stories high, having a helipad, and being no more than 10 years old. After conducting a thorough search, I was able to present the organization with three different buildings that fit these criteria.
One of these buildings was particularly interesting to the organization, and I was even able to convince the owner to sell the property to them. This was no small feat, as the sale of the building would result in a significant commission for me, potentially amounting to millions of pesos. However, despite my efforts, the organization ultimately declined to rent any of the buildings that were presented to them. They cited a lack of budget and the proximity to election time as the main reasons for their decision.
As a broker, I was naturally disappointed by this outcome. It can be frustrating to invest a significant amount of time and effort into finding a suitable property for a client, only to have them ultimately decide not to move forward with the rental.
In situations like these, it can be helpful to have an Exclusive Authority to Sell in place. This is a document that gives the agent or broker the exclusive right to sell a property for a certain period of time, protecting the time and effort they have invested in the process.
This type of document is particularly useful when dealing with properties that are hard to sell and have a limited pool of potential buyers, such as large tracts of land or industrial subdivisions. Without an Exclusive Authority to Sell, other brokers may try to get involved in the sale and potentially benefit from the work that has already been done, which can be frustrating and demoralizing for the original broker.
In this particular case, the brokers involved felt that the organization had used them to study the facilities of the different buildings without any intention of moving forward with a rental agreement. While it is always important to be professional and work in the best interests of your clients, it is also important to protect your own interests and ensure that your time and effort are being fairly compensated.
Remember:
- Make sure to set clear requirements and expectations with your clients to avoid misunderstandings.
- Protect your time and effort by securing Exclusive Authority to Sell when necessary.
- Don’t be afraid to negotiate and advocate for fair compensation for your services.
- Closing big deals can be rewarding, but also remember that the chances of success are often slim.
- It’s important to strike a balance between serving your client’s needs and protecting your own interests.
