Selling or buying commercial real estate is a very big decision. In terms of selling, putting your property up for sale involves a lot of money and you have to be very cautious if you want to enjoy a full profit out of your sale. In contrast, if you intend to buy, there are certain things you need to know first to ensure you are investing in sound real estate property.
Regardless of what side of the closing table you plan to sit on, one thing is clear: everything must be legal and in perfect order. Thus, it is important to employ the services of a knowledgeable and experienced commercial real estate broker to assist you on how to sell or buy commercial real estate legally and profitably. Qualified and licensed brokers can provide you genuine advice on important things like contracts, land titles, disclosures, and property assessment issues. They can also help you close a deal once negotiations from both parties are done and all requirements have been met.
Read on and find out the top ten reasons why you need to hire a commercial real estate broker.
#1 Peace of mind. Although buying or selling a commercial real estate property would seem as easy as putting up a ‘for sale’ sign or advertising it on the Internet, it could still involve a lot of legal procedures that can be very complicated for owners to understand fully. From tax implications to land titles and contracts, these obstacles are best left for a professional real estate broker who has extensive expertise in handling commercial real estate deals. With the help of experienced real estate brokers throughout every step of your transaction, you can not only help maximize your bottom line but also obtain a peace of mind knowing that an experienced professional is working on your behalf.
#2 Market knowledge. Understanding the market and knowing where you will attract your targeted customer is vital in the success of your business. As is true in most industries, the conditions of the market constantly change and various opportunities are found and missed on a daily basis. An experienced commercial real estate broker processes tons of market opportunities everyday through various sources while sifting out the best for their customers and clients. Not having substantial knowledge such as this could potentially prove detrimental to your commercial property transaction.
#3 Disclosure of important information. As your commercial real estate broker, they are duty bound to disclose any information with regards to the seller’s prior transaction data and motivation to sell, buyer’s credibility and strength to close, or any other vital information that the other party’s agent may choose to potentially withhold. Additionally, experienced commercial real estate brokers will oftentimes have important information regarding the previous history of similar properties which may provide you with the ability to make a more educated decision on how you would like to move forward with your transaction.
#4 Effective negotiations. As your exclusive commercial real estate broker, they are bound to negotiate for your best interests. Furthermore, working with an experienced broker can potentially provide you with negotiating power to obtain deals you may have once thought as too good to be true. As professionals who work on negotiating commercial property deals for a living, commercial real estate brokers have invaluable expertise in maximizing your bottom line and will likely provide you with better terms than the terms you may be able to negotiate by yourself. Additionally, although you have the option of hiring your own attorney during the contract writing process, it is still beneficial for you to hire a broker on your behalf as they will also help in reviewing the legal documents related to your transaction.
#5 Minimal cost. For buyers and tenants, the services of a commercial real estate broker usually come at no additional cost. In most commercial real estate transactions, commercial real estate brokers working on behalf of the buyer or tenant will get compensated for their services through the listing broker. Thus, hiring a commercial real estate broker to represent you in a purchase is simply a no-brainer. In contrast, commercial real estate brokers representing sellers are usually compensated for their services via a small percentage of the total sale price of the transaction. Generally, however, the commission fees charged by commercial real estate brokers provide sellers with a higher bottom line at the closing table, thus resulting in a higher net return to the seller had they otherwise not employed a commercial real estate broker.
#6 Financing assistance. A majority of veteran commercial real estate brokers have direct connections with lenders who have the financial capacity to lend you money at better and more competitive rates. Burdening yourself with the task of obtaining financing from lenders who may not even be willing and able to provide you with the capital to purchase a commercial property can ruin a deal before it has even begun. With the help of a commercial real estate broker by your side, you will be better prepared for the pitfalls that may arise throughout the arduous process of your commercial property transaction.
#7 Access to extensive connections. Many commercial real estate brokers may be able to provide you with a plethora of connections to small businesses and other programs that can streamline your commercial property transaction. Experienced commercial brokers have extensive networks of qualified buyers from which they are able to sell your property quickly and effectively. Furthermore, many commercial real estate brokers also have connections with potentially motivated business owners, thus providing you with off-market listings that may better match your search criteria than the available listings you are able to obtain online yourself.
#8 Your broker is your safeguard. It is imperative to have at least one real estate broker involved in any transaction because if the other parties involved do not have a broker, at least you have yours to act as a buffer. This is because commercial real estate brokers add immense value and protection by overseeing the interaction between you and the other parties involved. If you have a good and experienced broker working on your behalf, they can help smoothen what is often a very difficult path towards negotiating, completing, and closing a deal in your best interest.
#9 Valuable experience. Arranging and constituting profitable leases or purchase terms can be a very complex and multifaceted task to say the least. Nothing in the commercial real estate business can replace valuable years of experience in the industry. Although you may have access to some information regarding a particular property through online sources, the valuable expertise that a commercial real estate broker provides to your transaction can make all the difference for you in the long run.
#10 Effective time management. More often than not, business owners typically have their hands full of various company related obligations. By utilizing the services of a qualified commercial real estate broker, you can maintain full focus on your business while obtaining the assistance and guidance of a professional real estate broker in facilitating the tedious task of closing a commercial real estate transaction.
In sum, these are just a few of the reasons to employ a commercial real estate broker in your next commercial property transaction and, with the right one by your side, you will be glad that you did!