If you thought selling a home was a complex process, try selling a business. Still, some commercial owners attempt to sell their own properties because they think they can do it themselves and save on commission.
The fact is, the complexities of a commercial real estate transaction are even greater than those of residential real estate, and going it alone is simply not wise.
“Commercial real estate practice differs greatly from residential real estate. There are financial, ownership, and other issues pertaining to the environment, structure, and legal matters that need to be addressed for both the buyer and the seller,” says Azizali Kanjee, Broker of Record and president of Inprobus Realty Corporation. “Every commercial transaction will be different in several aspects and it is important to have someone with the knowledge and professionalism in commercial real estate to navigate the transaction for the client and ensure that it completes smoothly and efficiently.”
These same sentiments are echoed by Brian Walker, Broker of Record for NRS Select Ltd., who likened the complexities of commercial real estate to a minefield.
“The requirements and intricacies of a commercial real estate transaction have become so complex that it’s essential to have the guidance and oversight of a professional commercial REALTOR®,” says Brian. “Standards continually evolve and different issues emerge. A commercial REALTOR® is best positioned to understand and navigate through the minefield of challenges one faces when dealing with commercial real estate.”
In case you need more convincing, following are some more reasons why it is advisable to use a commercial REALTOR® when selling – or buying – commercial real estate:
Private sellers do not have the same marketing ability as commercial REALTORS®. Through their brokerages, commercial REALTORS® have access to a large pool of motivated buyers. For example, commercial REALTORS® can market property to other REALTORS® on the OREA Commercial Property Database. And, the greater the buyer pool, the more likely the property will be sold quickly and at a better price.
Commercial REALTORS® can help seller clients locate and market different types of commercial real estate, such as office investment, leasing, and franchise and business opportunities.
Many commercial REALTORS® have specialized knowledge that could prove invaluable when negotiating a transaction, such as space planning, zoning, environmental issues, appraisals, and financing.
Commercial REALTORS® can list properties on the Invest in Ontario website. A program of the Ontario Ministry of Economic Development, Trade and Employment, Invest in Ontario provides business information to potential international investors. The site has a commercial and industrial database.
SOURCES: The Commercial Real Estate Transaction, 2012; Get Results with a Commercial REALTOR® brochure
| REALTOR® is a registered trademark of The Canadian Real Estate Association (CREA). Only salespersons and brokers who are members of CREA, the Ontario Real Estate Association (OREA), and the local real estate board, can use the term REALTOR®. |
What other reasons do you give potential clients about why they should work with a commercial REALTOR®?
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