To use a commercial broker or not to use a broker, that is the question. The simplest and most direct answer is an emphatic “YES! Definitely use a broker!” This answer leads to the next two questions. “Why should I use a commercial broker?” and “Which broker should I use?”
A good commercial real estate broker is an experienced professional with market knowledge that will be invaluable to you if you are purchasing or selling a commercial property. It is the broker’s job to know which properties are available, which will be listed soon and those that are just sold. He/she should be able to quote verifiable comparables, and other market information that will aid you in the transaction that you are considering.
A good commercial real estate agent is also a good negotiator. He/she will have done homework on the buyer or seller on the other side of the transaction. If the other side is represented by a broker as well, those two will have already spoken very candidly about the transaction are discussing ways to get the deal closed as soon as possible. Remember, commercial properties are high dollar transactions, which means that the broker is highly motivated to get your deal done. However, the ethical broker will always have his client’s best interest at heart.
As to the question, “which broker”, that is a little more complicated. Choosing a broker is no simple process. It will require you, the consumer, to become educated. When you are ready to make a real estate transaction take a driving tour of the area in which you wish to purchase or of the area that directly surround the property you wsih to sell. Watch for realtor’s signs and take note of which brokers or commercial brokerage houses are most commonly listing properties in your area. Also, call local real estate offices in your area. Ask which of their agents are commercial brokers and get their contact information.
Once you have a short list of brokers, interview them. Ask how they would market your property and/or which properties they have listed that fit your criteria. Ask for referrals from past and current clients. Check with the state department of real estate to make sure there are no complaints against this broker. You should also perform an internet search on your broker. You would be surprised what information you can find out about real estate brokers online.
A word of caution; be wary of the broker who is too eager to sell you a property that doesn’t fit your criteria. If the broker seems too slick, too phony or if what he/she says doesn’t pass the “sniff test,” run away. Your instincts are probably right. Trust them.
Bottom line: Do your due diligence and after you have done your diligence, do a gut check and make sure you feel comfortable with the broker. You’ll have a much greater likelihood of having a pleasant and profitable experience.
Next week’s topic: Choosing a commercial property that is right for you.
Comment Preview