Real Estate Brokers: Who, What, Why and How
The confusion between brokers, agents, what they do and what it means for you and your office leasing experience is a prevalent phenomenon.When you're seeking a new place for you team and your business, you may be wondering, who should I reach out to? Who will help me identify my actual space requirements? Who will best serve those needs?In fact, you might even be asking yourself, "Why should I even consider working with a broker or an agent to begin with? Doesn't that cost money?"Before we explore what it means to be a commercial real estate broker, let's set one thing straight first:
Brokers/Agents Don't Have An Upfront Pricetag
Something that holds people back from working with brokers or agents is the misconception that they have to pay an upfront pricetag. It's a naturally line of thinking—you seek out professional representation and that should come with an associated fee. After all, that's how it works in most other industries.In the commercial real estate industry, it's not the case. A broker or agent only receives payment when a deal goes through and that payment is commission paid by the seller or leaser, not you.Be Smart—Bring on Professional RepresentationThe professionals are out there and they're there to help. There are no initial costs to begin working with them to search for your ideal piece of land, building, store front or office space.This being said, it's foolish not to seek professional representation. Commercial real estate practitioners bring a lot of value to the table when it comes to:
- Assessing your needs properly
- The search process
- Valuing your interests
- Asking good questions
- Seeking issues
- Negotiating the best deal possible deals
An Overview of Brokers
In the real estate world, being a broker is the equivalent of having a doctorate. In order to receive this status, one must complete additional schooling, coursework and State-level testing.The Who and WhatBroker status indicates not just more complete knowledge of real estate, but more understanding of real estate law and more overall power.Also, having brokerage status, allows one to run their own brokerage firm, while real estate agents aren't able to do so.Why You Want OneAgain, brokers have status that suggests more knowledge and real estate power. In your search process and negotiations, this is something you want on your side.The core of their knowledge is their understanding of both the buying and selling sides of the real estate process. This not only allows a fuller visualization of the overall process, but also equips them to handle two areas of work:
- Buying/placing you in the right property or space
- Selling/leasing your property or space
How to Work with a BrokerThe process is the exact same as seeking out an agent. You search, ask and vet your options. Working with a broker is free and won't run you any cost. They get paid by the landlord or seller upon completion of the deal.
Ready to work with a broker? Let's get in touch.