Looking to buy commercial real estate for your business or as an investment? The following are ten (10) reasons to seriously consider using a commercial real estate agent to represent your interests.
10. Provide an administrator for the purchase process.
A good Commercial Real Estate Agent will keep your property closing on track. For example, what is the status of the title commitment? Are there any questions or concerns regarding the title pledge? Has the survey been ordered and completed? When does my viability period end? When does my security deposit become “hard”? Is the financing in place? Is an appraisal required and has it been completed? Have the necessary inspections been ordered and are they complete? Has a lawyer reviewed the purchase contract? Have all closing documents been reviewed?
9. References to experts who can help with the purchase of the property.
Commercial Agents meet other real estate professionals who can bring their expertise to the property buying process. Professionals such as attorneys specializing in real estate, title companies, surveyors, engineers, architects, CPAs, insurance companies, building/property inspectors, environmental consultants, contractors, appraisers, etc.
8. Help with due diligence.
As part of the property purchase process, an experienced Agent can assist the Buyer in ensuring the appropriate items are researched to ensure the property will work for 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 Buyer obtain necessary documents and provide a checklist of these items, including information on zoning, jurisdictional requirements, floodplains, easements, covenants, conditions and restrictions, utilities, etc.
7. Identify and assist with property condition assessment.
Sales agents can help buyers identify the most important elements to consider as part of the buying and evaluation process, including a look at:
* To lease
* Physical condition
* Permitted uses
*Limitations on interior/exterior additions or renovations
* Adaptation of accesses and parking lots
* Opportunity to expand or lease excess space
6. Experience of working with other Buyers
Based on past experience, Agents may recommend other considerations to the Buyer, such as: “Consider purchasing additional square footage that will provide space for your business to grow and until the space is needed, the additional space can be leased and help provide to pay the monthly bills. .
5. It allows you to spend time with your business.
Let a commercial agent spend their time finding your property, which will allow you to spend your time conducting your business. Focus on his experience and let an agent help you by focusing on yours. Time is too precious a commodity to waste driving around looking for a property.
4. Experience in negotiating prices and terms.
There is no other business professional with the experience and knowledge of a Commercial Agent to assist with purchase price and contract negotiations. Questions such as: What is a reasonable and fair price for the property? Is this a good buy? What terms and conditions must be in the contract to ensure that my interests are protected? Do I need to get a certain amount of inspection and feasibility time as part of my purchase contract so that I can better study the property and confirm that it meets my needs?
3. The cost for the Buyer is zero, zip, nothing.
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. Experience in the local market
Nobody is going to know the local commercial real estate market as well as a Commercial Agent. The listing agent will not tell you if your property is listed above market rate and only an experienced agent can advise you on a location that makes sense for your particular type of business.
1. The Buyer’s needs differ from the Seller’s and need representation to protect their own unique interests.
The Seller or Owner will be represented by a Listing Broker and the fiduciary responsibility of this Broker is towards the Seller. The Texas Real Estate Commission (TREC) “Information on Brokerage Services” states that “the broker who lists the property for sale or lease is the owner’s agent.” It further states that “a listing broker may assist Buyers, but does not represent the Buyer and must put the Owner’s interests first.” Finally, it states that “Buyer should not tell the Owner’s Agent anything that the Buyer does not want the Owner to know because the Owner’s Agent must disclose to the Owner any material information known to the Agent. 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 Agent.