3 Things to Know When Hiring a Commercial Real Estate Agent
Do you own a commercial property, but are unsure about how to start the process of selling or leasing it? Are you uncertain about how to decide which commercial real estate agent to choose? It is important to hire an advisor to represent you through the process and these three tips will help you make a sound decision.
What is the commercial real estate agent’s level of experience with your property type?
Not only do you want to make sure the agent has been successful selling or leasing commercial properties in the past, you also want to make sure they have experience with your specific type of property. For example, a retail property will require a different skill set than an industrial property and an income producing property will need to be evaluated and appraised in a different way than you would value a non-income property. This is one reason why it is important to use an agent that specializes in commercial assets.
Start with an online search and preview the websites of various commercial real estate agents. What kinds of properties do they list? Do they list all types of properties or just one or two types? Commercial Real Estate covers a lot of areas and includes office buildings, industrial/warehouses, multi-family apartment buildings, shopping malls, and retail centers. You want to be sure that the advisor you choose has proven experience with your specific property type.
I also recommend that you interview a prospective commercial real estate agent in person to be sure that they have the same vision for selling your property that you do, and that they are someone that you will feel comfortable representing you.
What tools will be used to market your commercial property?
Find out which tools the agent plans to use to market your property and why they use these particular tools. For instance, I would use Loopnet, SiteIndex/Charlotte Commercial Property Exchange and Carolinas MLS to list your property information and photos so it can be easily found by people who are looking for properties like yours.
Using tools like SiteIndex also immediately places your property on my website for even more exposure and, more importantly, puts the property in front of hundreds of commercial agents who all have clients that may be looking for that exact property. If you are in the Charlotte market with a commercial property to sell or lease, and your agent is not using SiteIndex, you should ask why.
Do you fully understand your commercial real estate agent’s listing agreement?
It is extremely important to understand the contract between you and your commercial real estate agent before you sign it. Once it is signed, you have agreed to the agent’s fees, length of contract, and many other very important terms. Many of the agreement items and fees are often negotiable, so be sure to ask a lot of questions and make sure you get everything you want/need out of the agreement.
If you are looking to hire a commercial real estate agent to list your property, simply consider these three things before you sign the listing agreement. They will help you choose a qualified individual that will maximize the value of your assets and save you time and money.