Buying or selling commercial real estate is usually a significant transaction. Almost always, it will be more complicated than buying or selling a residential property. For that reason, an experienced commercial real estate broker should be involved in the transaction. Both buyers and sellers should be represented by a broker, although both parties should use similar criteria when choosing brokers to work with.
Choose a Broker Who Knows the Market
If you are selling a commercial property, you'll want to get the most money you can from the buyer. If you're in the market to buy, you'll want to get the property as cheap as you can. These opposing interests are the reason why the buyer and seller both need to work with brokers who understand the commercial real estate market. A knowledgeable broker can advise you on the highest and lowest price you should accept so you never have to second-guess your decision.
Commercial Brokers Should Be Effective Negotiators
Knowledge of the market will go only so far if your commercial broker isn't a good negotiator. In most cases, sellers won't accept a buyer's first offer, which leaves the door open to negotiating a higher price. At this point, having a commercial broker with great negotiating skills on your side is essential. Your broker should be able to use proven strategies to persuade the other party to give you the best price possible for the property.
Make Sure Your Broker Has Time
A commercial broker on the buy side should be able to show you a wide variety of properties that meet your criteria. On the sell side, the broker should be able to interest a steady stream of potential buyers. This takes time. When selecting a commercial real estate broker, always ask how much time the broker has available to dedicate to your sale or purchase.
Use a Broker Who Is Also a Lawyer
Many states require commercial real estate brokers to meet rigorous requirements and obtain licenses. A number of states, however, waive these requirements for lawyers. Since commercial real estate transactions typically involve many legal documents, it may be worth your while to find a commercial real estate broker who is also a lawyer.
A Commercial Real Estate Lawyer Can Help
The law surrounding commercial real estate brokers is complicated. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. We hope you found it useful. For more detailed, specific information, please contact a commercial real estate lawyer.