5 Questions to ask a Realtor before listing your Commercial Property
The commercial market is picking up and sales are starting to increase to levels we have not seen in quite some time. Many sellers have been waiting for prices to rise are now considering putting their properties on the market. Sellers should have high expectations of the marketing their realtor plans to use to sell their property. A good realtor shouldn’t wait for a buyer to find the property, but should be actively going to market the property to all qualified buyers and tenants. To make sure you get the highest price in the shortest amount of time, make sure you ask these questions when interviewing potential realtors for your commercial property:
1. Does the agent hold a CCIM designation?
A CCIM, or Certified Commercial Investment Member, is a designation awarded to commercial real estate professionals upon successful completion of 200 hours of graduate-level education curriculum and presentation of a portfolio of qualifying industry experience. CCIMs are recognized as experts in the industry and sought after by businesses looking for real estate agents with practical skill sets and proven industry experience. CCIM’s have unparalleled level of valuable online tools, including the Site To Do Business, a suite of mapping, demographic and other analytical resources as well as a network of CCIM members across the nation and around the world. CCIM professionals bring these competitive advantages to every brokerage assignment, lease negotiation or consulting project.
2. Is this agent a Commercial Realtor or does he also work as a residential agent?
Marketing commercial properties is a completely different business from residential properties and requires a unique set of marketing ability, property analysis, due diligence and building the right networks. You need an agent who spends all his time learning this specific skill set and does not try and sell your property the same way he would sell a house. Commercial realtors understand the local, regional, and national market trends and their impact on real estate.
3. Does this realtor have transaction experience, negotiating ability, and knowledge to be able to make recommendations to fulfill my needs?
An experienced realtor will have a large history of sales from which to draw experience and show their ability to get deals done. He may specialize in industrial, office, retail, investment or leasing. He should have knowledge of zoning, 1031 exchanges, environmental issues and other due diligence requirements that could protect his clients in complicated transaction and lead to more closings.
4. Will this agent utilize all of the marketing venues available through their company and seek out additional venues that other agents in their office are not using?
Each realtor implements a different marketing strategy. A good commercial strategy matches up buyers and sellers, or tenants and landlords, while considering the needs of both parties. A detailed marketing campaign should be designed for your commercial property. This may include extensive use of commercial internet sites such as Loopnet, CCIM.com, CoStar and Craigslist, in addition to extensive list of sites that are used by national companies. It should also include marketing to other brokers locally, regionally and nationally that may be working with clients interested in your market.
5. Does my realtor have the backing of a strong company to give him the best tools available to do his job?
A large company with a national affiliation is going to have many advantages over a small brokerage company when it comes to commercial sales. This is because many businesses have locations in multiple cities and want one company to handle all their business. With affiliations to national companies, a Seller is going to have a better chance of having their property get in front of the right people when it comes to buyers from out of the area.
If you have any questions about your property or know someone thinking about selling, please feel free to contact us to discuss our unique marketing platform.
-Dan Stiebel, CCIM