Common Misconceptions About Real Estate Brokerage

There are various misconceptions surrounding the role and motivations of a commercial real estate brokerage, and we want to set the record straight. Discover the truth behind common myths about working with brokers.

All Brokers are the Same

No two commercial real estate brokers are alike. As with any expert, a good CRE broker will have a diverse set of skills and experiences to shape their capabilities. One individual may specialize in industrial properties while another has a wealth of experience in retail brokerage.

Experience is the best teacher, and each broker will have unique insight into different parts of the commercial real estate market based on their training and knowledge.

That’s why it’s important to do your research to determine which commercial broker is right for you. Reviewing their history, testimonials and case studies can reveal how individual brokers differ in services and strategy.

Brokers Only Handle Large Transactions

Brokers aren’t solely driven by the dollar signs you bring to the table. They handle a variety of clients, including those with smaller real estate portfolios. A broker will find the right commercial properties to suit your investment needs based on your goals and budget.

Some brokers specialize in high-value properties, which can give the impression that they only deal with large-scale transactions. Corporate clients tend to seek larger CRE properties such as office buildings, retail centers and industrial complexes. While CRE brokers are attracted to those deals, it doesn’t mean they can’t assist those with more modest means.

A broker can help you find a cost-effective investment property based on your financial requirements that aligns with your growth plan.

Brokers Are Too Expensive

Commercial real estate is an investment, which is why it’s important to work with an expert. When considering CRE broker fees, it’s important to view those costs in the context of long-term savings. The upfront expenses pay for their negotiation services, strategies and insights that can save you money in the long run.

They also provide investment guidance and recommendations so you can avoid costly mistakes. How would those monetary losses compare against the expense of hiring a broker?

Your broker may have access to off-market deals on properties that aren’t publicly listed. Paying for that knowledge can open doors to more cost-effective investment opportunities with favorable terms.

Don’t forget to ask about fee structure so you know exactly what you’re paying.

DIY Brokerage is Easy

Despite the popular belief that if you want something done right, you do it yourself, brokerage is best left to the experts. Utilize their wealth of knowledge to navigate the commercial real estate market and save yourself the headache.

Brokers spend time, money and effort building their skills through experience and training. That includes negotiation strategies that can help you get the best possible deal on a commercial property. Even if you have a gift for bargaining, it can be difficult to understand the legalities of a CRE contract. Let your broker do the heavy lifting so you don’t have to worry about potentially expensive errors.

Brokers Have Hidden Agendas

It’s a common belief that a broker’s primary goal is to close a deal and earn a commission. While those tasks are important, they’re not the only influences that drive a broker to make a successful transaction.

A broker must first understand your values and goals to find the best property for your portfolio. That requires them to get to know you and build trust to ensure your satisfaction. Establishing a strong business relationship promotes long-term success amongst clients, too.

And their job isn’t done once you sign on the dotted line. Brokers are also educators and provide information and resources to help you make informed investment decisions.

Expert Commercial Real Estate Brokerage in Columbus, Ohio

Whether you’re buying or selling a property, the expert team at DRK and Company can help you get the job done. We offer managing and consulting services, real estate marketing, lease negotiation and so much more. Contact us to learn more about what we can offer you.

Until next time,

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