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EXPECTATIONS WHEN HIRING A REAL ESTATE BROKER

Expectations When Hiring A Real Estate Broker Photo

EXPECTATIONS YOU SHOULD HAVE WHEN
HIRING A REAL ESTATE BROKER
When a firm engages the services of a licensed real estate broker, what should be the expectation in terms of service and performance? There are many areas to note, but I will mention three that I believe are most important.

Experience.
Enthusiasm and hard work can make up for many deficiencies. There is no question that those two qualities are critical to any successful real estate assignment. However, people just beginning their careers in the brokerage business don’t start by tackling the most difficult deals. Standard practice in the industry is for a young person to be partnered with, and mentored by, a more seasoned veteran. There is much at stake in any real estate deal. Understanding how to structure the proper deal, familiarity with existing market conditions, editing lease language, and negotiating with area landlords generally is earned by riding the coat tails of a more experienced broker and on-the-job experience. Most of what I have learned over the years has come through time spent with experienced and competent landlords, attorneys and contractors . . . and making plenty of mistakes!!!

Honesty.
Absolutely essential! When any firm, large or small, places its trust in an individual broker, particularly with what’s at stake in a real estate deal, the broker must present an “open book” of himself and the deals he presents to the client. If a landlord is offering a special broker trip or bonus for concluding a deal, the client needs to know. If the broker represents a building they are recommending to the client, the client needs to know. A perceived conflict is sometimes worse than an actual conflict. In every instance, without exception, the broker must do what is best for the client.  There should be total transparency from start to finish.

Value.
The broker must provide value in every step of the process. If there is no value, what benefit is there to the client? Value comes in many forms and weighted differently by various firms. However, successful firms are focused firms, and taking the time required to complete a real estate deal can easily eat up lots of time . . . and money!!! Expecting a full-time employee with no experience or knowledge to represent the firm’s best interests in the marketplace is foolish. Landlords know their business, and you know yours; and someone needs to be an advocate for the client.

Looking For A Great Real Estate Broker? Look No Further!!!
Industrial Brokers:
Fred Hedberg, CCIM, SIOR, Principal
Phil Simonet, Principal
John Young, CCIM, Vice President
Joseph Schultz, Associate
Jack Buttenhoff, Associate

Office Brokers:
Nancy Powell, Vice President
 
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REAL ESTATE TIP: CHOOSING THE RIGHT BROKER

REAL ESTATE TIP: CHOOSING THE RIGHT COMMERCIAL REAL ESTATE BROKER
Would you buy a car from a boat deal?  Let your barber clean your teeth?  Perform your own surgery?  Of course you wouldn’t.  You want the people who you work with to be professionals and experts in what they do.  So why would you go into the commercial real estate market without professional help?
Commercial real estate brokers are trained and licensed professionals.  They all have geographic expertise, specific real estate product knowledge, and different negotiating styles.  When you are ready to go out and find property to lease, buy, sell, or invest in, your best bet is to interview a number of brokers to find the best fit for you.
Here are some questions you should ask real estate professionals to clearly understand if they can add value to your situation:

What product type do you specialize in?
What is the geographic area you focus in?
How long have you worked on this type of transaction?
Can you tell me about another client with similar needs that you helped in the past?
Do you work alone or with a team?
What is your communication style?

Do your homework and make sure you have a broker who knows the type of space you are looking for inside and out.
“Isn’t it cheaper to lease or buy space on my own?”
People always ask me “Isn’t it cheaper to lease or buy space on my own?”  No, is the answer most of the time.  Any broker you interview should be open and transparent with how they will collect their fee.  The industry has a standard commission for each product type, so make sure the brokers you are interviewing all tell you the same thing.  Typically, the broker commission is paid by the landlord or seller when leasing or buying an owner/user building.  In addition, your trained professional will help you avoid pitfalls.  These could include; paying over market rents, getting locked into a larger term than you want, and even having to pay to build-out new space yourself.
Do yourself a favor and let a professional help you with your space needs.  It will save you time, worry, and in the end, MONEY.