Joseph Larkin, CCIM, MCR, SIOR
Hire a Commercial Real Estate (CRE) Advisor
When buying, selling, leasing, or investing in commercial real estate, you may find it helpful to have a real estate broker that is a commercial real estate (CRE) advisor to assist you. Real estate advisors can provide many valuable services, and insights, and work with you in different ways. In some real estate transactions, the broker works for the seller or the landlord. In other words, each party in the transaction may each have a broker.
An advisor is one that is recognized for expertise, experience, and ethics. They have extensive education and training in commercial and investment real estate and are awarded professional designations such as CCIM, MCR, and SIOR. Such designations may indicate extensive training, experience, and following a code of ethics. Many Commercial Real Estate advisors have master's degrees in real estate and are very competent in real estate matters.
Choosing the Right Real Estate Agency to Represent Your Best Interests
Sometimes the same real estate broker may work for both the buyer and the seller. You need to know whether the broker represents you as your agent broker or simply assists you while acting as a broker for the other party. Some states allow a real estate broker to facilitate the transaction and represent neither party. There are various types of agency relationships that may be available to you depending on what state the transaction is occurring in. You should decide on your agency relationship with a broker before you sign any agreement.
Joe believes the best agency relationship for our clients is a fiduciary where the broker truly represents the client's best interests throughout the transaction. Would you hire an attorney to represent you in a lawsuit that represents the opposing side simultaneously? We do not change our commitment and agency relationship anytime during our agreement. We are your agent's advocate.
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If you are selling or leasing your real estate, you may want to “list” your property with a real estate brokerage firm. If so, you will sign a “listing agreement” authorizing the brokerage firm and its brokers to represent your best interests with your real estate and transaction. Some questions to ask, will all of the brokers represent your best interest? Would you hire a law firm where the opposing party is represented by another attorney within the same firm? Law firms are prohibited from representing both parties in a lawsuit within the firm.
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You may also be asked to allow brokers from other brokerage firms to help find a buyer or a tenant for your property. A Listing System may offer your property exposure and the opportunity for other brokerage firms to sell or lease your property, and the brokers share in the commission. If a broker from another firm presents an offer, ensure you understand whom that broker represents. Also, make sure you have a complete understanding of the sub-agency. We do not allow sub-agency where the broker from another firm represents our client in the transaction.
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Every broker must disclose and explain the proposed agency and working relationship. This discussion should take place you start discussing the material facts about you and the property with the broker.
Be sure to read and understand the agency and listing agreement before you sign. Your broker must give you a copy of both the agency broker disclosure and the listing agreement after signing it. A good broker will review the agreement with you. You may have an attorney review the agreement. ​
