Which Property?

Imagine you have the opportunity to present three different properties to a buyer:

Property A: A direct listing, the cheapest on a per-square-meter basis, offering a 3% commission.

Property B: Another direct listing, slightly more expensive than Property A, offering a 5% commission.

Property C: A listing from another broker, significantly higher priced than Properties A and B. It offers a 5% commission, but after splitting with your co-broker, your commission will still be higher than Property A.

Which properties would you present to your client?

Option 1: Only Property B, as it offers the highest commission.

Option 2: Properties B and C, providing the buyer with more options.

Option 3: All three properties (A, B, and C).

Poll Results

The results are in! An overwhelming majority (89%) said they would offer all three options to the buyer. The remaining 11% voted to only offer the property with the highest commission.

My Take: I firmly believe that brokers have a fiduciary duty to present the best deals to our clients. This duty sets us apart from merely being "agents." Ultimately, it's the buyer who decides which deal is best, and we can only facilitate that by offering all three options. Notably, doctors are required to inform patients about all possible treatments. If you were the buyer, wouldn't you appreciate knowing about all three options?

In our pursuit of immediate gratification, such as hitting sales targets, we often overlook the importance of long-term business sustainability. As one respondent put it, the value of being a truthful broker goes a long way.

Final Note: In one instance, a broker chose to present only the property with the highest commission. The buyer found out about other options through other parties, resulting in the broker losing the sale and a potential repeat client.