The downtown skyline is shown from the Chase Tower observation floor in Houston. (Photo by Brett ... [+]
While on the residential side owners might not hesitate to retain an exclusive broker to represent them, for commercial real estate you might be surprised to learn that many owners decide to sell properties without a broker. However, for commercial property sales that occur without a broker, owners run the risk of leaving money on the table when the transaction takes place. If you decide to sell a building, you might be able to get more value from the sale by using an exclusive broker. There are several reasons for this, and we’ll go through them in the following sections.
Consider these points when thinking about choosing an exclusive agent:
Getting An Inside Expert
I’ve spent my entire career selling properties, and I value hundreds of properties a year. I also sell dozens of pieces of real estate annually. An in-the-know broker will be in tune with market conditions and be able to point out the active buyers in the marketplace. If you sold a property three years ago, and want to sell another today, you might find that many changes have taken place since the last sale.
Gaining Maximum Exposure
As I discussed in a previous article, you’ll want to reach the widest audience possible when selling a property. To do this, it’s important to have the property posted on multiple listing sites and work with a listing broker who can advise you on how to best position the place in the market. For instance, with the challenges in the office market today, the highest and best use for an office property might not be another investor purchasing it. Instead, an end user might be interested in buying it, and a company could come in, purchase it and use it for their purposes. Or a office property could be sold to a buyer who wants to carry out a residential conversion. An exclusive broker can help you make decisions regarding how to present the property and get the highest price.
Having Someone In Your Corner
If you want to sell a property on your own and work with multiple brokers who bring in potential offers, keep in mind that these brokers are working for the buyer. They’ll be looking to get the lowest price possible for the real estate. Instead, if you have a seller’s representative, you’ll have someone in your corner working for you and helping you to get the highest price possible, along with the best terms.
While you might consider selling a property on your own, bringing in an exclusive broker can help you save time when carrying out the transaction. In addition, you’ll be able to be more confident that you’re getting the most value from your property. You can work with an exclusive agent to position the property correctly in the current market and then find ways to bring in a price and terms that you’re satisfied with.
