What’s the Benefit of Listing Commercial Real Estate Properties?
Let me start with some full disclosure… Every commercial real estate transaction that I have done was at a large, national real estate brokerage. The firm I worked with emphasized the value of listing commercial real estate properties and generally did an excellent job of adding value to its clients. So I’m biased, but for a good reason.
When they’re done the right way, commercial real estate listings work.
That being said, if you’re hiring a Broker that’s just going to talk to the same “usual suspects” then put your deal on LoopNet, I would say do it yourself. LoopNet memberships are cheap, and the “usual suspects” will take your call if you have a deal to sell them. Really. I promise.
So what’s so great about a well-executed commercial real estate listing? Here are a few things to keep in mind.
The Value of Listing Commercial Real Estate Properties with a Broker
- A professional CRE Broker will value your property and tell you where it will sell. You might not like it, but it will be the truth. Actually, make sure it is the truth. Ask him what his average list price to closing price ratio is. Mine was 99% way back when.
- If only the “usual suspects” see the listing, they’ll usually low ball you.
- Good commercial Brokers track people in 1031 exchanges. If yours does, she should be able to get you good offers from great buyers.
- There are lots of buyers that don’t do a lot of deals but, when they do, they pay good prices. They typically aren’t on the internet a lot and aren’t well-known enough to be in your database, unless you’re very active. A commercial real estate Broker with a good database should know them, though. Listing with THAT Broker will give you access to THOSE buyers.
- A listing Broker will do a lot of work for you. They can run tours, coordinate advertising, and even do walk-throughs, letting you not only maintain a buffer from the buyer, but also save time.
- Listing your property shouldn’t cost you much. When a buyer brings you an offer through a Broker, you’re either going to pay that Broker, or the buyer’s going to lower her offer to pay the Broker. If you have a Broker, you know what you’re paying and he/she takes care of paying the other Broker.
Ready to list your property? Find your nearest Sperry Van Ness® Advisor, who will always bring value to your commercial real estate listing, by searching our directory here.