How on earth did we do it? It’s actually quite simple as they were working with a real estate broker focused on the client’s goals and not their commission. You see, they had agreed to pay a 4% total commission that is pretty much standard for Paradise Sharks clients in the Northern Palm Beaches. We had offered a 2.5% commission as a co-broke on the MLS for anyone representing a buyer.
However, our very first call was from a buyer who was not represented by a broker. We listened to their needs and saw an opportunity to make everyone a winner. We typically do not like to represent both parties on a transaction, as we do not feel we can properly represent both parties in most cases. But in some cases, it makes a lot of sense and this was one of them.
Even though this is a red hot market. Even though we were priced remarkably well and had a long term tenant in place who wanted to stay. Even though this was an opportunity that would easily pay over a 5% cash on cash return to an investor we had not had another call about the property. We explained to both the buyer and the seller how we could put together a deal before another potential buyer submitted an offer and how we could make this an easy win/win for all parties.
We suggested in this market our seller client should get full list price this early in this game. We knew that representing both parties on what was shaping up a a simple straight transaction would not take us any more time and no additional commission was needed. The buyer was an investor and we would be happy to credit the seller the 2.5% co-broke commission which we did. We simply took 2.5% off the sales price making it an even better deal, and return for the buyer/investor.
We tread very lightly in such circumstances and explained to both parties the window of opportunity was limited as if we had another offer come in before we had a fully executed contract I had an ethical issue. You see another buyer would be at a disadvantage because with a broker representing them they would be at a 2.5% disadvantage and I could not offer the discount. Luckily everyone agreed to a contract prior to anybody else presenting an offer.
Our seller client was happy. Our buyer client was happy. The tenant was happy. Paradise Sharks was happy. The key to proper real estate representation is trust. It’s working with a broker focused on their clients goals and not how big their commission check would be. In the end we put together a transaction that paid us handsomely for a transaction that took very little effort. Our seller client walked away from closing with a check larger than they would have if they sold for full price. Our buyer client ended up with a great property and a better cash on cash return. The tenant has a new landlord with little disruption.
It’s the way real estate should work and if Paradise Sharks can ever be of service, please let us know. Our consultations our complimentary. Our goal is to provide you world class service and save you money at the same time. Contact us anytime at 561.308.0175 or firstname.lastname@example.org. We won’t bite but we will make you smile.