How to Choose a Commercial Real Estate Broker
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Originally posted on: https://www.trendzzzone.com/how-to-choose-a-commercial-real-estate-broker/
Did you know that 82% of small businesses fail due to cash flow problems? Whatever the reason for selling your commercial property, choosing the right broker is vital.
But how can you choose the right one in the sea of choices? It can feel difficult, but it doesn’t have to be. Read this guide on how to choose a commercial real estate broker today!
When you Sell Business, you want a commercial real estate broker with experience. Find a broker who has plenty of experience working with tenants. You might also find a broker who works with both landlords and tenants.
See what designations they have after their name. Whether they have great work experience or higher education levels, these letters will reflect this.
You might also consider a team instead of a person. Consider if you’ll need a smaller firm or an international brokerage firm.
Some questions to ask:
- What escrow company do you normally use?
- Tell me about challenges you’ve overcome completing transactions
- How many transactions have you completed?
- How long have you been selling commercial real estate?
- What’s your specialization?
When selling a business, find a broker in your area. You’ll want someone who understands real estate in the area and how brokers and landlords work.
Find a real estate broker who is financially stable and will put your needs front and center. Brokers get paid when the deal is done. If they’re not focused on selling, your property might sit for longer.
A local will also have connections in the area. They’ll understand what’s going on in the market. Brokers know landlords, current deals, and how to negotiate.
Interview brokers before selling your commercial property. Avoid friends unless they’re qualified.
Friends might not have the expertise you need. There are specialists for various types of properties.
Hire someone you won’t feel uncomfortable expecting the best from. Check their reviews online and see if they’re on the Better Business Bureau. The Better Business Bureau will show if they have any complaints against them.
Ask them about past challenging experiences. Ask about the process and how they’d market your property. Find out about fees and overall charges.
Consider Your Needs
What is your commercial property, whether it’s a warehouse or an apartment complex? Hire an expert who specializes in your property.
They might represent investment, land, retail, or industrial businesses. Brokers might also handle tenant vs. landlord situations.
Avoid someone who mostly focuses on homes and does commercial real estate on the side. This is only a requirement if you live in a smaller area.
Discuss with them your must-haves and nice-to-haves. Decide in advance what details you’ll share with the broker.
It’s good to like the personality of the commercial real estate broker. Enjoying their personality will make the process more enjoyable overall.
A likable personality might mean better chances in negotiations. You’ll want them to be fair but firm.
Choose someone you trust. You’ll want an agent who will provide you with the best options.
While it can be tough to pick the right agent, listen to your gut. Who appears the most genuine in what they say? You’ll want to weed out those just saying the right things.
Consider Conflicts of Interest
Brokers might represent several businesses in the area. They might be working with competing properties of yours.
If they’re working with the competition, it’ll be more difficult for them to promise you the best deal. See if they have similar clients to you. These other buildings might pay a higher commission which could gain their interest.
Reach out to your friends and family to see if they have a broker they’d recommend. Remember that their idea of a high-quality broker might differ from yours. But knowing that someone you trust has had a good experience with them is a strong sign.
Find out how often they’ll be in contact and how. See if it matches your preferred communication style. You’ll want to avoid those that don’t call you back.
They should provide you with data if you’re looking to buy property. The right brokers will provide referrals for surveyors, attorneys, lenders, managers, etc.
Begin to analyze deals and offer agent feedback. Avoid exclusive representation agreements in the beginning.
This agreement will lock you in with that broker. If this occurs, you might be stuck with a bad broker who doesn’t bring you deals.
You might be locked in for a certain period of time. This is for more experienced businesses that can identify past transactions from that broker.
A Proactive Broker
Find a broker that’s proactive with the timeframe, objectives, and finances. They’ll discuss your circumstances with you and research your portfolio. Through research, they’ll help you build a portfolio.
Brokers should present you with off-market deals before others can see them. They need to communicate with you consistently.
Choosing a Commercial Real Estate Broker
While choosing a commercial real estate broker can feel tough, this guide should give you a better idea of what to look for. Take your time interviewing various brokers in your area to see which best suits you.
Remember that you’ll want a broker with your specific experience. Have them show you previous experience and ask how it turned out.
Would you like to read more educational content for businesses? Then, be sure to check out our other articles today!
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