Commercial real estate is a tricky business. Make one wrong mistake and it could cost your business thousands upon thousands of dollars. It’s expensive so want to make sure you are choosing something that has the best value for the dollar. Finding something that is right for you can take time and a lot of effort. You must consider the target market, financials, space, regulations, and the whole nine yards. Bring in a broker and most of the work can be done for you thus clearing out much of the stress you would deal with if doing this on your own. Brokers are necessary in this business, but how do you know if it’s time to let them go?
Unfamiliar with the area
To get the best service, your broker should have the upmost knowledge base of the locations you are trying to score. If you are working in Cincinnati, don’t hire a real estate broker that just moved from San Francisco. If you truly want to succeed, work with a professional who knows every single crack and crevasse of the area.
It should be a personal relationship between you and your broker. Someone who truly knows you will better be able understand your needs. This will lessen the risk for disappointment and ensure that your broker is looking out for your best interest versus just looking for something that would best suit their wallet.
It may sound obvious, but not every agent acts with integrity. Especially if you are new to the business, there is a higher risk of you being taken advantage of. They may not show you all the options, especially those lots or buildings that will not give them as high of a return. Make sure to ask questions. If you have never worked together, do not always take their word for everything.
The internet is your friend. Do research before signing a contract with your broker. Do they have a salty past of relationships with customers or a full inbox of positive reviews? Are they licensed? Don’t jump in to the ocean blind. If they are fresh into their career, do they come from a reputable business?
Clearly there is a lot to consider when working with a broker. Not everyone is malevolent. If you are not ignorant on the subject, your broker can be a great resource in succeeding. Find someone that suits your needs and build a lasting relationship.