It never ceases to amaze me that many owners refuse to exclusively list their properties for sale with an experienced broker. Several perceived reasons to not exclusively list include: the seller wants to save the fee by selling it themselves, unsolicited offers make exclusives unnecessary, brokers are held in low esteem, the seller does not want the property shopped, the seller wants to maximize the incentive of all brokers (via an open listing), the seller wants half the fee (listing side) as the promoter.
Now let’s consider reasons why a seller would want to consider an exclusive listing. Keep in mind that a broker is more aligned with a seller’s goals. This is a partnership where both seller and broker are working toward a common goal. The broker wants to maintain a relationship with a seller – now may not be the right time to sell but if a solid relationship exists, a good broker will call an owner when changes occur in the marketplace and when opportunities exist to acquire or dispose of assets. The broker also has a greater incentive to maximize price, unlike buyers who present unsolicited offers who are motivated to minimize price. The more money an owner makes on a sale, the greater the compensation for the broker. Brokers also have a greater incentive to screen buyers. Wasting time on a low probability buyer prospect wastes the time of the broker and seller. A professional broker recognizes the value of time and will commit to an effective marketing plan. Additionally, an exclusive listing creates a legal buffer for the seller. Furthermore, many buyers respond more favorably to exclusive listings because the listing increases the probability that the property is for sale and is deliverable. The best buyers, frequently the 1031 exchange buyer, cannot afford to waste time on deals that are open listings or are not exclusively listed for sale. They could incur a substantial tax penalty to an owner who decides to pull their property due to a lack of a commitment to sell. Lastly, the exclusive establishes the seller’s expectation in terms of price.
Why consider The Loeffler Self-Storage Group? We are a group of highly specialized self-storage brokers who have over 25 years of combined experience in the industry. We have underwritten tens of thousands of self-storage properties and have access to out-of-area-buyers and out-of-product buyers. We have the ability to produce massive amounts of controlled exposure for our listings which ultimately yield higher net prices to our sellers. We feel so strongly about exclusive listings and being represented by a qualified broker that if you decide not to list your property with us, we encourage you to list your property with a qualified competitor.