Looking to buy commercial real estate for your business or as an investment? The following are ten (10) reasons to use a commercial real estate agent to represent your needs.
- Gives to the manager of the purchase process.
A good commercial real estate agent will help you close on your property. For example – what is the state of ownership commitment? Have questions or concerns about ownership commitments? Has the study been ordered and completed? When does my validity period end? When will my money become “hard”? Is the financing in place? Is an assessment required and completed? Are necessary inspections ordered and completed? Has a lawyer looked over the purchase agreement? Have all closing documents been reviewed?
- Recommendations for professionals who can help in the purchase of the property.
Commercial agents know other real estate professionals who can offer their expertise to the property buying process. Professionals such as real estate attorneys, title companies, surveyors, engineers, architects, CPAs, insurance companies, building/property inspectors, environmental consultants, contractors, appraisers, etc.
- Assist with due diligence.
As part of the property buying process, an experienced agent can assist the buyer in conducting an inspection of the relevant items to ensure that the property works for the buyer’s needs. Due diligence is a pre-purchase effort to obtain and analyze information about the property under contract. Agents can help a buyer obtain the necessary documents and provide a checklist of these properties, including zoning, jurisdictional requirements, flood plains, easements, covenants, conditions and restrictions, utilities, and more.
- Assist in identifying and evaluating property conditions.
Commercial agents can help buyers identify the most important factors to consider as part of the buying and evaluation process:
* Physical condition
* Permitted uses
* Restrictions on interior/exterior additions or renovations
* Adequacy of access and parking
* Opportunity to expand or rent out excess space
- Experience working with other buyers
Based on past experience, agents can recommend other things to the buyer – “Consider buying more square footage and can rent out more space until the space is needed and offer to help pay the monthly bills”.
- It allows you to spend time with your business.
Let a commercial agent spend your time finding properties so you can spend your time running your business. Focus on your skills and let an agent help you focus on them. Time is a precious commodity when driving to find a property.
- Knowledge of price and verbal negotiation.
No other business professional has the experience and knowledge to assist with purchase price and contract negotiations. Like – What is the reasonable and fair value for the property? Is this a good buy? What terms and conditions should be included in the contract to ensure that my interests are protected? Should I have a certain amount of inspection and feasibility time in my purchase contract to better study the property and make sure it meets my needs?
- The buyer’s value is zero, zip, nada.
The seller pays the buyer’s agent commission based on a commission agreement between the two parties. The full cost will be borne by the seller.
- Local market experience
No one knows the local commercial real estate market as well as a commercial agent. The listing agent won’t tell you if his/her property is listed above market value, and only an experienced agent can advise you on what location makes sense for your particular type of business.
- The buyer’s interest is different from the seller’s and they need representation to protect their own interests
The seller or owner is represented by a listing broker and this broker’s fiduciary responsibility is to the seller. The Texas Real Estate Commission (TREC) “Information About Broker Services” states that “a broker who lists a property for sale or lease is the owner’s agent.” It also states that “a listing broker may assist buyers but does not represent the buyer and must put the owner’s interests first.” Finally, “The 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 the agent knows. This is not a good situation for the buyer. Enter. Sellers have representation from their listing agents, buyers need the same from a commercial buyer’s agent.”