In a newspaper you will sometimes see a real estate broker advertising a property with the words Principals Only.

There are a few reasons why real estate brokers do this. 

There are also ways to approach these brokers and work with them to do business.

This is a free market service and it is better to find out about opportunities to do business that not find out about them at all.

Reasons why they do it:

1. Principals have instructed them for confidential purposes.
   
   Sometimes a real estate broker returns to their office only to tell everyone in their office a certain property is for sale thereby causing problems which were not intended. It can be bad for business for instance if customers, employees know that a business is for sale. So confidentiality has to be respected. 
   
   Competitors sometimes want the Profit and Loss Statements with no intention to buy, only to use the information for competitive purposes;
   
   Possible Solution: Reinforce the fact you will respect the confidentiality and sign any agreements necessary to ensure that.
    
2. They have asked another broker for permission to advertise it and will only make money if they sell it themselves;
   
   Possible Solution: A broker does not make money servicing another brokers listing unless you offer a small referral if you are successful.
    
3. They have been burned by cooperating with other brokers to only lose a deal when the broker goes around behind their back and tries to deal direct.  They are sick and tired of dealing with unscrupulous brokers.  They just do not trust other real estate people.
   
   Possible Solution: Reinforce the fact you will respect the confidentiality and sign any agreements necessary to ensure that.
    
4. There is a lot of work that has to be done to sell a hotel or gas station for instance. Along comes a residential salesperson who knows nothing about how to sell one of these types. So the listing agent has to do basically all the work yet has to split a commission 50/50.  They get fed up doing all the work only to have to split 50/50.
   
   Possible Solution: Discuss alternative commission splits.
   
   Possible Solution: If a person is a residential salesperson he/she could simply send the broker his prospect and receive a referral fee.
    
5. Possible Solution: Get paid by the buyer.  That way to all intents and purposes you are the principal. The other broker does not have to split a commission with you.

If anyone has a problem dealing with someone please feel free to call me and I can try to help.

This is all about developing good relationships with other brokers and salespeople and one might find that they will choose to deal with you.  I have found many of these people end up cooperating once they are convinced you have integrity and bring that to the table.

Your comments appreciated.