Why Hire a Broker?

Posted by admin on December 12, 2012 under by Tim Davis, Commercial Real Estate Questions Answered, Daytona Commercial Real Estate | Be the First to Comment

Anyone looking to buy or lease commercial real estate should not spend one hour of their time out hunting for a building.

Strong statement, I know. Here is why. Any property on the market listed for sale, already has a predetermined amount of commission that is going to be paid when that property sells or leases. If you spend all day Saturday with your wife and kids riding around in the car looking for a building, the listing brokers in town are going to love you! This is because he will collect the entire commission specified in his listing agreement with the property owner, and won’t  have to split the fee with a tenant’s broker! Great deal for brokers like me!

If you work with a broker, and sign a representation agreement, they will do all the leg work for you. And 95% of the time this is of no charge to you. Every listing agreement I’ve ever signed to sell/lease property has had a section that specified that I will pay a buyer/tenant broker part of the commission. It is OK to call on a few signs or online ads if you don’t know a sharp broker in your market. But once you run across one that seems to know their market and the type of property you are looking for, it is time to harness their knowledge and get back to running your business. A good broker should know every thing that is on the market and deliver that info free of charge. Furthermore if you hire a competent broker that actually knows their product type and the marketplace, he is going to know everything that is going to be on the market in the near future, everything that you will be for sale, everything that could be for sale, everything that might be for lease, every building whose tenant is not utilizing all of the space, and maybe looking to sublease part of the space.

You are a professional and you run your business like one. When it comes to leasing a larger office space, buying a distribution warehouse, leasing an industrial manufacturing facility, or opening a new retail location – hire a professional.

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