Representing Yourself In A Commercial Transaction Is GREAT NEWS – for the OTHER PARTY!
Self-Representation In A CRE Deal Is GREAT NEWS For the OTHER PARTY!
Mike Moloney, president of Phoenix’s Commercial Real Estate Institute shared a great article from INC Magazine with his network of Certified Commercial Real Estate Specialists:
In the article, the author Hans Steege tells the story of what he encountered representing his company as leasing agent, as they set out to find new commercial space.
What Hans found out was that without representation, his company was disadvantaged.
They went in supremely prepared, to be sure–with knowledge of their business and its needs. Computer aided design. Armed with information about the market offerings.
Yet, they were not taken seriously by the landlords and their commercial real estate brokers.
As a Bullhead City, Mohave County AZ commercial real estate broker who represents owners of improved and unimproved commercial real estate properties for sale and lease, I have a duty to protect my client and be honest in dealings with customers.
That duty, however, doesn’t extend beyond honesty where unrepresented parties are concerned.
We always set out to create a win-win situation. It’s just common sense.
But we won’t–we CAN’T–let our clients leave money on the table.
I hear so often, especially from investors, that they don’t NEED an agent, they don’t WANT an agent involved, an agent will cost them more money, they don’t want to be tied down because more than one agent is better. So they seek out the listing broker and act as their own representative.
As soon as most consumers start negotiating on their own behalf, the difference between them and a seasoned commercial broker becomes apparent.
Hans’s story ended happily:
“So we bit the bullet and hired a commercial realtor. Thank goodness. We had done a great job of figuring out which space and location would work best for us, but the real value the realtor provided was negotiating the terms of the lease and the build-out provisions. We didn’t get everything we wanted, but we got a lot more than we would have otherwise. We got a significant rebate to cover build-out costs, reasonable repair terms, and the ability to have dogs in the office. And, of course, the wisdom not to try this on our own next time.”
And their rep even negotiated for them to have their dogs in the office! Good rep!
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