What should I expect from my Commercial Realtor?
A commercial realtor has a responsibility to understand and meet the Buyer’s expectations when it comes to commercial property.
This includes:
1.Understanding Buyer Needs: The realtor should listen carefully to the buyer’s requirements, budget, and investment goals to gain a clear understanding of their expectations for a commercial property. The realtor should ask these questions to help get a clear picture of the Buyer’s intentions from start to finish:
Purchasing Decisions –
- What type of property does the investor want? Land only, warehouses, retail, office?
- What purchase price, cap rate and terms of the investment real estate be? 8%, triple net, gross lease?
- Where does the investor want the property? Major locations, out of town, edge of town, future growth area, opportunity zones?
Holding Period
- Should the financing structure be changed? Interest only, length of arm loan, amortization length
- Change in zoning? Agri is best for taxes, but does it need to be commercial, multifamily?
- When should the property be sold? 1 year, 5 year, which is better for taxes & appreciation?
Selling Decisions
- What should the sold price be?
- What should the selling process be? All of it at one time, break it down, create new parcels?
- How should the property be marketed? By income, location, development potential, owner financing?
2. Market Knowledge: The realtor should possess in-depth knowledge of the local commercial real estate market, including property types, locations, market trends, and pricing. This allows them to provide valuable insights and guide the buyer toward suitable options.
3. Property Search: The realtor should actively search for commercial properties that align with the buyer’s criteria, including size, location, amenities, and budget. They should present viable options to the buyer and provide all necessary information for decision-making.
4. Negotiation and Due Diligence: The realtor should represent the buyer’s interests during negotiations, ensuring fair terms and conditions. They should also assist in conducting due diligence, including property inspections, title searches, and financial analysis.