Developers!
All of the Developers I have worked with throughout my near 30 year Real Estate Career have always been the same: Greedy!
Recently, I have been going back and forth with a S Cal Developer, who used to be licensed as a real estate agent in California, who is now searching for Las Vegas houses (to buy and flip).
Fortunately, I have a seller client who will sell his rental houses in a portfolio all cash.
After going back and forth with the Developer, and settling on the price and terms, the developer then throws in that I have to split the procuring commission with his "broker!"
What?
Apparently, this Developer wants half the procuring commission and he found a local agent -- who I know - who is wiling to pay this unlicensed person half of the procuring fee just to have some business!
Is this sleazy?
YES!
First, it never occurred to me that the "agent" actually would be willing to do this. (He must be hard up for money.)
Second, why would an agent/broker even want to be inserted into any ongoing negotiation post the listing agent procuring the Buyer. (This doesn't make any sense.)
Lastly, this Developer never mentioned "his broker" until the terms of the deal were set and I was drafting the contract.
Now, the Seller does NOT need to sell! (It would be a different scenario if that was the case.) And, the original sales terms have been altered from the Seller's original terms and I have a feeling (knowing the Seller for as long as I have) he is most likely NOT going to accept.
We'll see what happens.
(My wife suggested I report this to the NV RED because I know that the Developer wants and probably will get half of the procuring fee IF I go along with his sleazy deed.
If you are searching for an honest CRE Broker...
Contact David Howes: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
All of the Developers I have worked with throughout my near 30 year Real Estate Career have always been the same: Greedy!
Recently, I have been going back and forth with a S Cal Developer, who used to be licensed as a real estate agent in California, who is now searching for Las Vegas houses (to buy and flip).
Fortunately, I have a seller client who will sell his rental houses in a portfolio all cash.
After going back and forth with the Developer, and settling on the price and terms, the developer then throws in that I have to split the procuring commission with his "broker!"
What?
Apparently, this Developer wants half the procuring commission and he found a local agent -- who I know - who is wiling to pay this unlicensed person half of the procuring fee just to have some business!
YES!
First, it never occurred to me that the "agent" actually would be willing to do this. (He must be hard up for money.)
Second, why would an agent/broker even want to be inserted into any ongoing negotiation post the listing agent procuring the Buyer. (This doesn't make any sense.)
Lastly, this Developer never mentioned "his broker" until the terms of the deal were set and I was drafting the contract.
Now, the Seller does NOT need to sell! (It would be a different scenario if that was the case.) And, the original sales terms have been altered from the Seller's original terms and I have a feeling (knowing the Seller for as long as I have) he is most likely NOT going to accept.
We'll see what happens.
(My wife suggested I report this to the NV RED because I know that the Developer wants and probably will get half of the procuring fee IF I go along with his sleazy deed.
If you are searching for an honest CRE Broker...
Contact David Howes: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
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