Specialization:
This can mean different things in different markets and product types. At the very minimum, you should work with a broker that EXCLUSIVELY sells commercial real estate. While you may like the broker that sold your house, they are not the right person to help you sell your commercial property. In areas with over 1 million people, you should be looking to hire a broker that specializes in the specific property type – industrial, office, retail, or multifamily. This will ensure they truly understand the value proposition of your individual property.
Track Record:
During an interview, ask the agent what they have recently sold that is similar to your property. Ask for references. An agent shouldn’t be figuring out how to sell your property, they should already understand the process and the buyer pool. Don’t let someone learn the business while selling your property.
Team & Tools:
Is the agent a solo operation or do they have staff and partner brokers? Are they affiliated with a national firm? You want to make sure that the agent will be VERY focused on your individual property. With giant teams, you might get lost “in the mix”. However, teams allow listings to be processed faster, more buyers to see your property, and typically more seamless processing of the sale process. Bigger teams will also often have access to better tools and larger databases. Sometimes with teams, you will be assigned to a junior agent once you sign a listing. This can be a good thing as that agent will be very focused on your transaction, however, you want to know this person before signing a listing agreement. Ask the agent what tools they have access to, what type of database they have and who will be handling marketing activities and follow-up.
Marketing Process:
Who will they be marketing the property to? Some brokers will simply put your property on the commercial MLS and wait for buyers to call them. Others might only show your listing to a select group of “preferred buyers” and pressure you to sell to one of them. Are you concerned about the confidentiality of your sale? Then perhaps a private placement marketing process makes sense. For most owners, maximizing exposure is the right choice. By maximizing exposure, you will create a competitive bid process and achieve maximum pricing. Ask the agent how long it will take to find a buyer, who will they show the property to, and how.
Communication:
How will the broker communicate with you throughout the marketing and closing process? Top brokers typically send formal marketing updates every 1-2 weeks and communicate at a minimum on a weekly basis. Ask who on the team will be your point of contact and how frequently you will be communicating with them. You are paying this agent a large amount of money to sell your property, you deserve consistent communication.
Commitment:
Will this broker be committed to your transaction providing the value you deserve? How many cold calls will they be making to sell your property? You deserve a broker who is not going to stop at the first buyer they find, one who is committed to searching for multiple strong buyers.
Expertise:
Where is the broker getting information about your local market? The best brokers will know about non-public information such as tenants coming to the market and possible developments. They will not just know the price of the sale comparables, they will also know the story behind them. Ask about the details of their top comparable sales. Look for a market expert.
