What do the brokers do after the LOI is signed on commercial deals? I ask because our hourly rate frequently gets challenged and negotiated down and it’s pennies against the 5+% brokerage fees these guys get after (from my perspective at least) “finding” the deal and disappearing until closing…

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They hang around and harass you to turn docs/follow up on the status to make sure the deal closes and they get paid. They largely just disappear.

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Sometimes they can be helpful to facilitate issues but most of the time harass you to get the deal closed so they can get that bag

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Brokers get paid way more than we do. But only if the deal closes.
Some do a fair amount of work post LOI (depending on the complexity of the deal) most do very little besides try to rush the closing.

likesmart

Ooo I know this one - mostly nothing. Set up useless calls, harass me for things they don't need yet, and sometimes, rein in crazy sellers.

likesmart

If the broker is good and knows what they're doing, they will set up and be involved in all due diligence aspects, zoning and planning, and making it as easy as possible to determine whether the deal is worth closing or not. If your broker is only looking to push the deal to close and make their commission and is not looking out for the best interest of their client, you need to find a new broker!

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Brokers are mostly finders, but the good ones can be helpful when issues arise during negotiations and diligence. But mostly they’re there to find a buyer or property.

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Tell your client you’ll do the deal for the same commission! When they question you, you can tell them that compared to the broker you are doing A LOT more work, so they’re really getting a huge bargain compared to what they are paying the broker.

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#amen

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