Are you wondering how to choose the right commercial real estate broker? There are ways to tell the difference between a good and bad real estate broker. Whether you are selling or buying a property, you want a professional broker, or even better, an advisor, who makes sure you get the best property for your goals with the least amount of hassle and confusion.
Sadly, not every commercial real estate broker is a professional and not all can offer the expertise needed for a smooth transaction. So, take a look at these 10 ways that you can tell the difference between a good and bad real estate broker and make sure your best interests will be represented before you engage a CRE broker.
5 Signs of a Good Real Estate Broker and Advisor
1. Educated and Committed
A good commercial real estate broker, who fills the role of an advisor, is licensed with ongoing education. He or she is committed to clients’ education, advocacy, and fulfilling their objectives. This professional will go beyond the requirements to prove their commitment to you; to act in an advisory manner rather than simply being focused on the sale.
When you look for a commercial real estate broker to help you with your net lease transaction, be sure to ask about work history, credentials, and if this is a full-time career or just a side job or hobby. You want an advisor who is focused one-hundred percent on you and your transaction during normal business hours and beyond if necessary.
2. History of Good Transactions
A professional real estate broker with a history of good transactions is an indicator that he or she is able to close the deal or make the sale successfully. Researching the broker’s record will give you an idea of you how many successful transactions were closed over the years and can disclose details like how long transactions took and if there were any unhappy surprises.
3. Good and Timely Communication
If your commercial real estate broker is slow to communicate, then you might lose the perfect deal. During your first contact, be sure to assess how quickly he or she responds to calls, texts, and emails (particularly during normal working hours). Furthermore, it is a good idea to read reviews or ask other people about their communication and experience with this real estate broker. You can more easily work with a commercial net lease advisor who communicates efficiently and quickly.
4. An Expert in the Field
Other than guiding you through the process, your chosen real estate broker should be an expert in the field of commercial real estate, notably net lease transactions and 1031 exchanges, offering you tips and techniques for selling and buying, especially when it comes to triple net lease investments as they tend to sell faster than traditional net lease deals.
Two examples of helpful expertise include:
- If you are a landlord and want to sell your property, then your selling agent should give you suggestions for staging directions and property improvements that can aid in attracting buyers and selling at top dollar.
- If you are an investor who wants to buy a commercial property, then your buyer’s advisor should give you strategies to aid in finding the right type of property in the right location and making an attractive offer that will lead to acceptance.
5. Location and Current Market Knowledge
A good real estate broker keeps up with current commercial market trends. Since location is a large factor in determining the value of your real estate, understanding nationwide growth trends and location specifics is essential to an investment with good returns.
- If you are an owner selling a property, you need a broker who knows your area and the current market rates; one who knows how to market to the right buyers for a quick sale at the best price.
- If you are an investor who wants to buy a net lease property, then you need a good real estate advisor who knows the nationwide market and can help you find a location that fits your goals. For example, an absolute triple net lease property will have zero landlord responsibilities, so you could potentially purchase one in any state, no matter where you live.
Now let’s look at the five signs of a bad real estate broker.
5 Signs of a Bad Real Estate Broker
1. Bad and Slow Communication
If your commercial real estate broker has not contacted you in a couple of weeks, it may be time to find a new one. Even if he or she has not found any new properties that meet your needs as a buyer, or nobody has called to show your property that’s for sale, your broker, who is meant to be helping you, needs to contact you regularly to keep you up to date on what’s happening and hone your strategy as needed.
If your net lease broker has contacted you but it’s abrupt, confusing, or lacking the information you asked for, this is bad communication, which can lead to a lack of due diligence and other issues when a deal is being made.
2. Lack of Leadership
It is not a good sign when your commercial real estate broker agrees with you on every point. This is lack of leadership and expertise. In this case, he or she is only eager to please and not committed to doing their very best to represent your interests in the market.
So, when it comes to pricing a property for sale, be sure your broker provides the research that resulted in that list price. When a selling agent asks for your opinion on how much you think your property is worth and then lists it for that price without doing any due diligence, ask what value they have offered (or if you simply were accurate in your valuation)?
When buying, if your commercial real estate advisor doesn’t know what a property is worth and allows you to go in at full price without negotiating, that’s not a good sign. He or she is your representative, working for you, and should know how to lead you through a sale or purchase with your best interests in the forefront.
3. Unused Resources
A bad real estate broker will not make the effort to use all the tools they can to market your property to potential buyers or help you buy one that meets your requirements.
So, when selling, make sure your chosen net lease broker has the experience to take great photos and videos and write thorough descriptions of your property. Furthermore, he or she should list the property where it will draw the most interest (real estate websites) and notify their entire market network of your property via email, text, or phone calls.
If you are purchasing a commercial property, there is technology available to make every transaction easier, more straightforward, and timely. A bad real estate broker will not use this technology and continue to do things the old way, which can lead to losing the perfect property.
4. Too Much Pressure
Indeed, you should look for a real estate advisor who has valuable knowledge and an educated opinion who can respectfully voice it. One who can help you get the best property for your goals or sell your property at the most desirable price by providing documentation to support the advice. However, if you feel like your broker is pressuring you one way or another unduly, then it may be a sign of a bad real estate broker.
You should never feel pressured into anything that involves investing your hard-earned money. A good net lease advisor will listen to your needs, advise based on experience, and go forward with what you decide is best for you.
5. Lack of Follow-Up
A lot of real estate brokers think their job ends when the transaction is completed and they get paid. This is a sign of a bad broker.
On the other hand, a broker who contacts you beyond the completion of the transaction to address any follow-up questions and to ensure you are happy with their work is going above and beyond and showing a valuable commitment to client service.
A bad real estate broker will act as if you’re only good for a quick sale, where a great advisor will do everything in their power to keep you satisfied long after the deal closes to ensure your investment is successful.
To Wrap it Up – Ask Questions and Perform Research Before Choosing a Real Estate Broker or Buyer’s Advisor
The real estate broker you choose should be an expert, properly trained, and committed; one who acts in an advisory capacity rather than just hurrying to close a sale. Further, he or she should have good past transactions and timely communication. Your chosen broker should have valuable knowledge of location trends and the current market, lead you through the transaction with ease, and follow up with you after the deal closes.
This is where Westwood Net Lease Advisors can help. We are unique in the commercial real estate industry – we are net lease real estate brokers who primarily represent buyers in an advisory capacity, from before the property search all the way through closing and thereafter, at no cost. We never use pressure and always look out for our clients’ best interests. With decades of experience and the tools, technology, and network to find exactly what you’re looking for, Westwood can ease your real estate broker selection process.