Investing in Commercial Real Estate - Buyer Representation
When Michael's Commercial or another Broker lists a property or business opportunity for sale, our fiduciary responsibility is always to the Seller. This means we owe our allegiance and loyalty only to the Seller throughout the whole transaction process.
When a typical purchaser asks, "How much will they really take?" or "Are they flexible?" Our answer is always, "They will take the List Price." Why, because our fiduciary responsibility is to the Seller to get them the best deal.
However, don't get discouraged or give up because we can now represent you the purchaser with a Buyer Representation Agreement. What does this mean for you the Buyer? It means we can pledge our allegiance and loyalty to you; therefore, our fiduciary responsibility would be to you the Buyer. It also means we can do a market assessment based on an analysis of the property or business to help you formulate an offering price. We can even negotiate on your behalf to get you the best possible terms and price for your purchase. With an agreement, Michael's Commercial can represent you the purchaser throughout the whole transaction process.
What are the advantages of signing a Buyer Representation Agreement?
Michael's Commercial will
. . .help you search and find the right property or business that is just right for you.
. . .expand the search beyond MLS properties to For-Sale-By-Owner, For-Lease-By-Owner properties, foreclosed properties, bank trusts and new construction that fits your criteria.
. . .attempt to discover and reveal to you facts about specific properties and the owner's motivation that will strengthen your negotiations.
. . .help you value the property or business to obtain the best possible price in your best interest.
. . .help you sturucture an appropriate offer to purchase or lease a specific property or business.
. . .present the offer to the Seller's Agent or Leasing Agent on your behalf.
. . .negotiate on your behalf to obtain the best possible terms and conditions to purchase the property or business.
. . .recommend and assist you in securing appropriate financing.
. . .help you overcome any obstacles to insure a smooth transaction to closing.
. . .represent you on a confidential basis.
. . .represent you the Buyer throughout the whole transaction process.
A Broker who represents a purchaser without Agency Representation is in violation of their fiduciary responsibility to the Seller.
It is to your advantage to have a Buyer Representation Agreement. Let Michael's Commercial represent you on your next transaction.
Image Courtesy of David Niblack
Michael Setunsky is the Broker and owner of Michael's Commercial LLC serving the Northern Virginia commercial real estate market. His more than 23 years of experience as a commercial real estate and business broker has earned him the distinction for being one of the top commercial real estate producers in the Mid-Atlantic Region. He also serves on the Mid Atlantic Real Estate Marketing Association's (MAREMA) Board of Directors, and is a Commonwealth of Virginia licensed Instructor. He teaches Pre-licensing, Post Licensing Education, Broker's and Continuing Education courses. Visit his company web site at http://michaelscommercial.com/.
©2009 Michael’s Commercial LLC, All Rights Reserved - Investing in Commercial Real Estate - Buyer Representation – September 8, 2009
Michael, I wish all commercial agents had your morals and I'm sure many do. It is always important to know where the agent's fiduciary responsibility lies. Make the commitment and put it in writing...
Thank-you for this Tuesday post,
Paul
Hello Michael,
You express this so clearly. Good for the consumer and good for other agents to follow, too. Have a great day!
Mary
Hi Paul: You are welcome and thank you for your kind words. Have a great day!
Mary: Your comment is appreciated. Thank you for the visit and have a great day also.
Hi there, Michael. I saw on Gab Rhind's post that you have a sister here in Tucson. If you ever come out to visit, please let me know. There's nothing better than meeting fellow Rainers!
Mike in Tucson
Mike,: Thanks I will do that. Thanks for the visit.
Hi Michael:
Excellent post...
You've made some good, step by step points here.
I love your answer to the question of what the seller will take.
Hi Toula: Some Buyers are apprehensive about signing a Buyer Broker Agreement. The benefits to the Buyer are only in their best interest. Thanks.
GOOD AFTERNOON MICHAEL! This is very professional and a very comfortable way of presenting this option to Buyers! I concur with Mike above - would love to meet you as well! -- Gabrielle
Hi Gabrielle: Thank you very much! Don't know when we will be able to make it to Tucson, but when we do I will definitely look you up. Thanks again.
Michael Commercial and residential are as different as black and white - it takes a specialist to do either and do it well Karen
Karen: Like everything else, you can only do one thing well and should concentrate on that effort. Thanks for the visit.
Michael - very clear explaination. Best of success to you out there in Virginia.
Hi Michael - Good for you for having such a high quality of knowledge in your commercial area and being so articulate in explaining the issues involved. I used to own commercial property (office buildings) in Southern California, and anyone who doesn't understand commercial sales has no business trying to do it - there is way too much money involved and complex issues that a residential specialist wouldn't even consider. And you do a great job of explaining the benefits of a buyer representation agreement.
April: Thank you very much and the same to you. Thank you for stopping by.
Susan: I agree. Commercial real estate is a field all by itself. Thanks for the visit.
Michael, Great post. It is perfect for showing a buyer the importance of Buyer representation in commercial real estate. I am another person who feels that agents should not try to work in both commercial and residential real estate. There are just too many differences and it is very difficult to do both of them well.
Gary: One of the biggest mistakes agents make is they don't specialize. Unfortunately, you can't do everything well. Thanks for stopping by.
I agree with Gary, Michael & Karen. I work in commercial real estate and although my background is in residential, I refer most residential clients to residential agents. The markets change all the time and to do the best job for your client, you have to be up on that changing market.
Good information and good post, Gary.
Peggy: I couldn't agree with you more. I wouldn't attempt to do a residential transaction anymore. I'll take the referral. Thanks for stopping by.
Very well laid-out explanation of Commercial Buyer Representation, Michael...kudos to you! :)
Leilani
Leilani: Thank you very much and thanks for the visit.