So, you have invested in real estate and don’t have the time for the day to day management. Maybe you have a block of offices in the city and your busy schedule keeps you away from tackling important issues like commercial lease renewal. Well, to eliminate the chances of running down your real estate investment, hire a commercial real estate agency.
Let’s face it. Not all commercial real estate agents are the same. To ensure that you have entrusted your property with a credible agency, you need to make the right choice. This calls for having good information about the commercial real estate agency.
Want to know more?
Here are the top 5 things you should consider when hiring a commercial real estate agency.
1. Technical competence
As you search for the right commercial real estate agency, you will come across phrases like “top commercial real estate agency in … or the best commercial real estate agency in …” What you need to know is that this is just sales language commonly used by professionals across different fields and so, you should not read a lot into it.
When searching for the right commercial real estate agency, look for technical competence. Some questions that can help you determine this include “How have your agents saved clients money”, “What type of properties have you handled “ or “How long have you been in business.”
2. Reputation and track record
As said earlier, it is quite common to come across real estate agencies boasting about being the best in the city or state for having sold a large number of homes. If you are not careful, such language can sway you. As a result, you will end up making the wrong judgment and hiring the wrong agency for your investment.
As a real estate investor, the only thing you should care about is the commercial real estate agency’s reputation and track record. Why? Your goal is to ensure that your real estate property is sold quickly or managed professionally. If you come across a real estate agency that has sold more homes than another, you should ask yourself why and how. What makes the two parties different? It could be their marketing tactics or the type of property they are selling off.
3. Online presence
Do the commercial real estate agents have a website? Do they have any social media presence? When was the last time they posted content about their business? What are their followers commenting about? Do they have a YouTube channel?
Having an online presence is an important consideration that you should not overlook. Why? According to a United Nations agency tasked with the mandate of overseeing international communications, there are over 3.2 billion active internet users. This value has increased from 738 million internet users in 2000 to the current user base in 2018 accounting for more than 40% of the world’s population.
With an active online presence, not only will you learn more about the company –services offered, testimonials and contact information – but you will read customer reviews from other sources such as Yelp, Google, and social media pages. As a result, you will be in a better position to make the right decision.
4. Memberships to accredited associations
Being licensed and certified means that you are now competent to offer services related to the commercial real estate. How do you get certified?
The National Association of Realtors and its affiliate bodies are mandated to certify commercial real estate agents thus imparting the required powers to provide commercial real estate services. During certification, agents undertake additional training which centers on handling real estate transactions and ethical standards. Once an agent qualifies, he or she is certified. The highest certification level offered by National Association of Realtors is Certified Real Estate Brokerage Manager. With this certification, the agent’s professional standards and office performance are raised.
5. Real estate commission
In a real estate transaction, the seller is required to pay a commission to the real estate agent for services rendered. It is quite common to find out that the buyer has to pay part of the commission, especially in a hot market. What you need to know is that the commission is negotiable but it’s not easy.
To ensure that you are charged an affordable commission, check out the services you require. Using this, you can now negotiate the commission. You may also be required to pay a fixed percentage of the final sales price. This amount is paid off to the broker which means that the agent will receive part of this commission from the broker.
Selecting the best commercial real estate agency is crucial to the buying and selling of real estate. Finding the right agency is like looking for a needle in the haystack. The good news is that if you consider the above factors –technical competence, reputation, online presence and real estate commission among others- you will be able to separate the chaff from the wheat.