Brokers don't expect to get their list price

19d ago (edited) in 📢 GENERAL DISCUSSION

I had a good call with a broker today about a storage facility. One of my takeaways from the call I thought was worth sharing.

*** The broker said their strategy for pricing properties is to price them "as aggressively as possible without discouraging offers." He said his "duty is to the seller unless the buyer is paying his fee." ***

Those sentences hit me. It reframed what I should expect from brokers while interacting with them. (that they're not looking out for you)

It reframed how I view what brokers expect when they receive offers. (They don't expect your offer to be at or maybe even near the list price because they know their pro forma is best case scenario)

In their OM they're setting the bar as high as possible as if the best case scenario will play out. He said he's not looking to sell any property for less than someone is willing to pay for it. They're not looking to sell you something for under market value. I knew this, but hearing it directly from the broker hit me differently.

*** Takeaway: They don't expect to get their list price. As a buyer, don't feel badly by offering a realistic price that is substantially lower than the list price based on your underwriting. Also, even though the broker may be a kind human being, as a buyer, the broker is not on your side. Stick to your guns with your numbers.

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