The real estate industry is full of unique interactions and ideas. Making your way through the field can be difficult to go alone. Luckily there are trained professionals available to aid in making the process go smoothly.
It’s not required to have an agent to make deals, however. Some transactions are simple and can be handled personally, with minimal need to ask questions. Others are extremely complex, requiring assistance from others. Knowing which situation you are in can be confusing all on its own.
Whether you are looking to buy a downtown San Diego condos or attempting to sell a small diner in St. Louis, it’s important to know if you need the help of a professional. Here are five questions you should ask before you hire a commercial realtor.
1. Will they be able to find what you’re looking for?
Real estate agents have varying specialties. Some excel in locating the perfect property, some are great negotiators. Be sure to ascertain what your potential agent’s personal skills are.
The perfect buyer or property will not always exist in your area. Having an agent that can see the potential in your project is essential to coming away from the experience satisfied. Don’t be afraid to say no to the options you are presented if they aren’t what you’re looking for.
2. What is their commission?
Real estate agencies and professionals typically work off of a commission structure. They charge a percent of the sale price in most cases. This means the seller will make less profit from the sale when using an agent.
The buyer’s agent is there to help the buyer get a better price. On the other hand, the listing agent is working to get a higher profit on behalf of the seller. Both agents are paid by the seller, so it is a good idea to have an agent on your side if you are a buyer.
3. Are you confident in your price?
When going into the real estate market on your own, it is important to know if the listing price of your property is within a reasonable range of the property’s value. In an ever-changing market, it can be hard to decide what a competitive price is. An agent can help with setting a price that will keep you feeling good about the transaction, while also getting the property sold.
On the other side of this issue is making an offer. If you come in too low, some sellers won’t even entertain future offers from you. However, proposing too high an offer will stick you with spending more than was needed.
Be sure to have some ideas of what you’re willing to take or offer before you go to speak with an agent, but keep an open mind. If you’re not comfortable with the market range, it may be a good idea to wait until a market swing gets you closer to an acceptable range.
Keep in mind that requesting or offering to update and repair parts of the property in question are good, non-monetary ideas for getting the value you want in the deal. Not all exchanges in real estate need to be based on cash alone. Sometimes the convenience of having an update made is worth more than the cost of the improvement.
4. What knowledge do they have of the area?
Commercial realtors and brokers go through training and must have certification to work in the real estate market. Knowing that they have learned about their field is a great weight off of many clients. The question that persists is what do they know about the location they are currently working in.
To make a good assessment of your specific needs, realtors need to understand how your market is different from other areas they may have lived or worked. Not only are the property values different, but the taxes, land values, and competition are different from place to place.
For a real estate agent to be an effective partner in the purchase or sale you are considering, they need to know the area. In some larger cities, this may mean a certain neighborhood; in smaller towns, this may mean your city and the surrounding ones. Be sure to ask your potential agent about their history in the region before making your decision to hire them.
5. Do you trust them to negotiate on your behalf?
There are no set prices in real estate. Like buying a used car, negotiations take place with the majority of sales. As frightening as this can sound, it makes sure that all parties are comfortable with what can be an enormous life decision.
Your real estate agent can negotiate on your behalf when dealing with potential buyers or sellers. Making a good deal is a large part of the market. Though you will always have the final say, it’s important to know they have your best interests at heart.
Make sure to be clear about the minimums and maximums of offers you’d be willing to consider. You are a teammate with your agent, you need to be on the same page. Setting general boundaries will help you both in the long run, it gives them room to work with interested parties while making sure you have peace of mind.
Conclusion:
Participating in the real estate market is frightening due to its changing nature and the high dollar values associated with it. Getting help from a veteran of the industry can ease a lot of the stress involved in making a sale.
Real estate agencies provide many services associated with the purchase and sale of properties. Take your time in choosing a partner for the process, each brokerage has their own talents. Choosing just the right one can make the experience go so much smoother.
Don’t hesitate to ask questions and set limits for your agent. When the arrangement goes well for you, everyone is happy. So get out there and make that deal!
