Why it’s So Important to Work With a Quality Commercial Real Estate Broker?
Commercial real estate makes for a great investment. But, how you go about finding the right property or getting a property sold is key to getting the right results. While most people are at least somewhat familiar with how residential real estate works, commercial is an entirely different story. Therefore, you need a quality commercial real estate agent to help you through the process — whether you’re interested in buying or selling.
Difference between Residential and Commercial Real Estate
If you’re new to the commercial game, you’re probably wondering what are the biggest differences between it and residential. Okay, size is obvious, but what else? Well, there’s the matter of actually finding properties for sale. (Or, finding buyers, when it comes time.) Financing is entirely different, as well. How you purchase a commercial property, like an apartment building or apartment complex is totally different than buying a single family home.
Many people start out investing in residential real estate simply because they’re more accustomed to buying homes, but commercial real estate can be a great way to balance your portfolio. You just need to bone up on the different rules and terms in the commercial market. —Entrepreneur.com
Then, there’s also the matter of landlord-tenant interactions and laws. Sure, these come into play if you rent a house, but on a much larger and complex scale when there are multiple units with numerous tenants. Make no mistake about it, there is a much higher level of consideration and care. Management is a lot more intricate and complicated. But, it’s certainly worthwhile or no one would invest in commercial real estate.
3 Biggest Benefits of Working with a Quality Commercial Real Estate Broker
So, why do you need to work with a commercial real estate broker in the first place? Well, there are a few compelling reasons. Here’s why it’s so important to work with a quality commercial real estate agent, whether you’re buying or selling:
- You don’t know what you don’t know. Stop right there and read that bullet point again. Give it some thought. Do you know what a 1031 exchange is? What about hard money loans? What’s a triple net or NNN lease? Have you ever heard of an environmental impact study? These are just a fraction of the many terms and scenarios you’ll almost surely encounter.
- There is no MLS for commercial real estate. Perhaps the biggest and most necessary reason for working with a commercial real estate broker is the fact there is no MLS. That’s right, there is no listing system for commercial properties. Which of course, presents a very large problem. But, an experienced pro will have plenty of information.
- Timing is key when it comes to buying or selling. Just as with any substantial investment, timing is a huge factor in the ultimate results. You need someone with a knowledge of the local market who knows its dynamics.