Are you looking to buy commercial real estate for your business or as an investment? Here are ten (10) reasons to strongly consider hiring a commercial real estate agent to represent your interests.
10. Provides a manager for the purchasing process.
A good commercial real estate agent will keep your property closing on the right track. For example – What is the status of the title commitment? Do you have any questions or concerns about the title pledge? Has the investigation been commissioned and completed? When does my feasibility period end? When does my deposit become “hard”? Is the funding in place? Is an assessment required and has it been carried out? Have the necessary inspections been ordered and are they complete? Has a lawyer reviewed the purchase agreement? Have all closing documents been reviewed?
9. References for experts who can help with the purchase of the property.
Commercial agents know other real estate professionals who can lend their expertise to the process of buying a property. Professionals such as real estate lawyers, title companies, surveyors, engineers, architects, CPAs, insurance companies, building/property inspectors, environmental consultants, contractors, evaluators, etc.
8. Assist with due diligence.
As part of the process of buying a property, an experienced agent can help the buyer to ensure that the correct items are sought to ensure the property meets the buyer’s needs. Due diligence is the pre-purchase effort made to discover and analyze information about the property under contract. Agents can help the buyer obtain the necessary documents and provide a checklist of these items, including information regarding zoning, jurisdictional requirements, floodplain, easements, covenants, conditions and restrictions, utilities, etc
7. Identify and help assess property conditions.
Sales agents can help buyers identify the most important items to consider as part of the buying and evaluation process, including by reviewing:
* Physical condition
* Authorized uses
* Limitations on interior/exterior additions or renovations
* Adequacy of access and parking
* Possibility of expansion or rental of excess space
6. Experience working with other buyers
Based on past experience, agents may recommend other considerations to the buyer such as – “Consider purchasing additional square footage that allows your business to grow and until the space needed, the extra space can be rented and provide assistance in paying monthly bills.
5. Allows you to spend time with your business.
Let a commercial agent spend his time finding you a property that allows you to devote time to conducting your business. Focus on your expertise and let an Agent assist you by focusing on theirs. Time is too precious a commodity to be spent driving around looking for a property.
4. Expertise in price and term negotiation.
There is no other business professional with the experience and expertise that a commercial agent has to help negotiate the purchase price and contract. Questions such as – What is a reasonable and fair price for the property? Is it a good buy? What terms and conditions should be in the contract to ensure my interests are protected? Do I need to be given some inspection and feasibility time as part of my purchase agreement so that I can better study the property and confirm that it meets my needs?
3. Cost to Buyer is zero, zip, nada.
The seller pays the buyer’s agent commission through a commission agreement between the two parties. The total cost is borne by the seller.
2. Local market expertise
No one will know the local commercial real estate market better than a commercial agent. The listing agent will not tell you if their property is listed above market price and only an experienced agent can advise you on which location is right for your particular type of business.
1. The buyer’s needs differ from the seller’s and they need to be represented to protect their own unique interests
The seller or the owner will be represented by a listing broker and the fiduciary responsibility of this broker rests with the seller. The Texas Real Estate Commission’s (TREC) “Broker Services Information” states that “the broker who lists the property for sale or rent is the owner’s agent.” It further clarifies that “a listing broker may assist Buyers but does not represent the Buyer and must put the interests of the Owner first”. Finally, he notes that “the buyer should not tell the owner’s agent anything that the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the owner. This is not a good situation for a buyer to be in. Sellers have representation from their listing agents, buyers need the same from a commercial buyer’s agent.