January 22

Selecting a Commercial Real Estate Agent

Everybody's a Real Estate Agent

There are times when it seems like everybody around you is a real estate agent.

If you've ever been in the market to sell, lease, or buy commercial real estate, you've probably found that the moment you mention your intentions, real estate agents come pouring out of the woodwork and march to your door like ants at a picnic.

Everybody from your auto mechanic to your cousin's daughter either "knows a guy" or just became a real estate agent, and all of them are now knocking on your door looking for your business.

real estate agent

The Residential Agent Pretender

Then, there's the residential real estate agent who's either bored or having a hard time selling houses and wants to try something new. And, they think they can list, sell, or lease a commercial property and make a "big score." So, they go out and tell unsuspecting people they're a commercial agent in hopes of getting business.

The problem is that absolutely none of these people understand the complexities of even the most basic commercial real estate transaction. And hiring someone with this lack of experience will likely become a very costly problem for everyone involved.

real estate agent

You're Paying for Experience

Selecting a commercial real estate agent is no different from choosing any other type of specialized professional, like a dermatologist or a tax lawyer.

What you're looking for is someone who has the experience to provide you with the best advice and assistance. Someone who will help you avoid potential problems and provide the best possible solutions when unavoidable problems occur.

real estate agent

Someone who hasn't had the experience dealing with commercial real estate can't anticipate potential problems, thus cannot help you avoid them, nor can they offer you practical solutions to overcome them when they occur.

What Can Go Wrong?

While there's an almost endless list of potential issues that can cause serious legal and financial liabilities, some of the more common include:

  • Environmental - Hazardous contamination or waste materials, wetlands, underground storage tanks, etc.
  • Zoning - Continuation of a Non-Conforming Use, Prevention of anticipated new construction or existing building expansion, etc.
  • Buyer Financing Issues - Agent failed to properly pre-qualify buyer for required financing.
  • Real Estate Appraisal Issues - The property doesn't appraise for amount needed for buyer's mortgage amount.
  • Unanticipated Seller's Capital Gains Tax Liability - Agent's failure to advise seller of the benefits of the 1031 Tax Deferred Exchange.
  • Eminent Domain/Condemnation - Agent failed to investigate for the potential taking of part or all of the real estate, or for the imposition of either permanent or temporary easements.
real estate agent

Although most people think, "This is never going to happen to me," the fact is the courts deal with thousands of liability and bankruptcy lawsuits every year filed by people who also thought serious problems were never going to happen to them.

It's Like Wearing Your Seatbelt

Hiring an experienced commercial real estate agent is a safety precaution to help you complete a trouble-free commercial real estate transaction.

It's like wearing your seatbelt; you don't expect to get into a car accident, but you wear that seatbelt as a precaution to minimize the probability of serious injury.

Compare Our Experience

I've been selling commercial real estate since I started my real estate brokerage career in 1971.

Over the last 5 decades, my clients have ranged from local business owners to international corporations. I've personally sold and leased various commercial property types, including multi-family apartment buildings and mixed uses, retail uses, industrial warehouses, and industrial chemical processing facilities.

Not only have I sold and leased commercial real estate, I'm an Accredited Senior Appraiser (ASA) in Real Property and Machinery & Technical Specialties: Mines & Quarries by the American Society of Appraisers. I'm also a State Certified General Real Estate Appraiser (NJ #RG00196400).

real estate agent

Ken Jones

With decades of experience selling, leasing, and appraising commercial and specialized industrial uses throughout the United States, Canada, and Central America, I'm confident I can help you accomplish your commercial real estate goals.

Contact me for a complimentary consultation to discuss your commercial real estate needs.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

You might also like