Monday, September 17, 2012

For Sellers Only – Interviewing Brokers

Commercial property sellers need to review their options - AKA, interviewing the most qualified commercial brokers in your area.  Beyond having the right credentials and background in your market, their services should include much of the following.

Check list of services:

1)      A current analysis of market conditions/trends within the area
2)      Supporting data based on price/ft. and income analysis comparisons
3)      A marketing plan which targets the property to right users/investors
4)      Aggressive promotional plans – including website marketing, signage, flyers, video tours
5)      Financing options – including both institutional, private, and VTB
6)      Negotiation strategies utilized
7)      Working arrangement with the local broker community
8)      Ability to service premises tours/viewings
9)      Transactional/contract expertise (documentation prep)
10)  References that can be reviewed and called upon

Beyond the services, a discussion of brokerage fees involved is certainly appropriate.
Typically this will be % fee structure based on the selling price of the property.  It could also be flat fee based, depending on your area and based on what you are able to negotiate. Fees will and do vary from broker to broker, even within the same area. Best advice here - is interview a few of the best qualified brokers in your area and make your selection based on your specific needs. But as a caution, remember that old saying – 'you get what you pay for' - which certainly applies in the world of commercial real estate.

All of the above, although not necessarily a complete list of services you need to consider, gives you a solid basis to interview candidates. Bottom-line - a Seller must be confident in the ability of the broker to 'GET THE JOB DONE'.

Again, seek out experienced commercial brokers within your market, to best market your property.

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