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Auction.com is looking to expand its commercial property business (and catch up with its residential sales!) by strengthening its ties with brokers.
Auction.com expects to sell between 1,000 and 1,500 commercial properties this year compared to 50,000 to 60,000 homes. So, at a broker party complete with 75 New York realtors and $1k gift certificates, Rick Sharga pitched the benefits of working together, the Wall Street Journal reports.
Sharga believes the best business model is to operate as a hybrid, where the brokers have the lion's share of the market, rather than cutting out the middleman.
One advantage to posting listings on Auction.com is that brokers can broaden their scope of potential buyers. Posters also don't have to spend as much on marketing, and experience a faster sales and closing process.
One obstacle, however, would be how to divvy up the 5% commission. Traditionally, commercial brokers who sold properties on Auction.com received a slightly smaller commission, but the company is looking to change its commission structure to avoid that.
To sweeten the pot, the service is currently offering brokers a $5k listing bonus, and an additional $10k when the property gets sold. [WSJ]
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