Do You Need a Commercial Real Estate Broker?
Ever wonder why the most experienced property owners use licensed real estate brokers and the small guys like to try and market the property themselves to try and save a fee? It’s easy to understand that people want to save as much money as possible, but there is a reason that the most successful real estate investors usually use agents to find their next investments and sell off the ones that need to be liquidated.
Brokers have a significant value in almost all real estate transactions due to their ability to get the property maximum exposure by marketing the property aggressively, which saves the client time and money. Most commercial real estate brokers/agents/advisors are also expert negotiators and help make sure no money is left on the table. Let’s talk more about the benefits and reasons why you should use a commercial real estate broker.
Let’s say an owner has a property that he would like to sell. He doesn’t want to hire an agent because, face it, six percent of a one million dollar sale is a significant amount of money. So where does he start?
With no access to CRE online databases, the only thing he can do is put a sign out front and maybe one or two in the windows. If he is extra savvy maybe he will know to put it on Craigslist. Now Craigslist has its place, but it’s probably not the best for a one million dollar office building.
Let’s fast forward one year; the building is still listed for sale with very few to no leads. This is probably due to lack of marketing or improper valuation. By hiring an broker out of the gate, his building would have been priced properly and put in front of the people who actually need to see it. Commercial real estate brokers have access to multiple online databases to help with the valuation process and possess the ability to get the property in front of the proper prospective buyers.
Negotiating a commercial real estate deal can sometimes be fairly cut and dry, but most of the time they can be infinitely more complex than a residential deal. Not knowing how a deal works can cost a seller a ton of money in lost revenue and legal fees.
It’s always best to have somebody representing you that deals with commercial real estate on a daily basis. There is even a fairly high chance that they have worked with this same buyer on multiple deals before and know how that buyer works.
Another issue is dealing with leases; just one wrong word or omission in a legal lease document can cost an owner a small fortune or some jail time (seriously)!! Allowing a commercial real estate broker to handle the negotiation and the legalities avoids all of these issues.
Showing the Property
Most buyers or investors will want to tour any property that they are about to purchase. So, when a seller with no broker puts his property up for sale, he will be expected to show the property himself. This presents a problem for a lot of the smaller owners because most potential buyers like to view commercial properties during business hours on weekdays.
It’s hard to get a break from their day job at 10 am on Monday morning to leave and go show their property. Having a broker represent you and show your building at a moment’s notice can be invaluable. Lots of high-profile buyers will just move on to the next option if they can’t get inside a building. Don’t miss the window!
Leave it to Us
Does one need a commercial real estate broker? No, but if a seller needs something moved quickly or they want to get as close to what the property is worth on a deal, then maybe it’s time to consider the fact that sometimes it truly is best left to a professional.
When selling or leasing your property, take some time and do some research on the local commercial real estate brokers. Pick the one that knows the market and is willing to actually work on your property, and doesn’t just put up a sign and hope for the best. Oh and did I mention; at SVN|GLL we work for FREE if we don’t make a deal?! Just sayin’…
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About Troy Burton – Troy Burton has an extensive 15-year background in real estate sales within the Baton Rouge market. He was recruited into the commercial real estate industry in 2013, and hit the ground running due to his experience and vast network of connections. Troy has represented various buyers, sellers, landlords and tenants in over a hundred real estate transactions over the past few years. Troy also specializes in property assemblage, retail leasing, and the sale of investment properties. He is committed to earning a reputation for being one of the most hard working, knowledgeable and trustworthy agents in the area. If you would like to contact Troy, you may call him at 225.367.1515 or email him at email@example.com.