5 Reasons "Not" to hire a Buyer’s Agent For Your Next Commercial Property Search

Who Really Hires A Buyer’s Agent?

 

When you bought your last home, did you hire a buyer’s agent? When you started your last commercial property search did you hire a buyer’s agent or tenant rep? Why is one different than the other?

Buyers of residential properties do it all the time and though not as common, Commercial Real Estate bloggers have been writing on the topic of hiring exclusive buyer & tenant reps in commercial real estate lately. Below are a few recent posts

Why Tenants Use Brokers at The Tenant Advisor

The Importance of an Exclusive Tenant Rep Broker at O’Donnell Comm RE

Benefiting from Tenant Representation at The Future of Commercial Real Estate (note: this blog is no longer online)

Buyer’s Agents in Commercial Real Estate (Here at robbeland.com)

What about the other side of the argument???

Maybe there’s an argument for not engaging a real estate professional to represent you in your next commercial lease negotiation. Maybe when you are looking to invest in a multi-family property just go it alone… Maybe you should just do it yourself.

Below are the top 5 reasons a business owner/manager would NOT want to engage an exclusive buyer’s agent or tenant rep and just represent themselves…in no particular order…

  1. I’m an excellent negotiator. I could do just fine negotiating with a property owner or listing agent for a commercial property. As the owner of a plastics company that specializes in injection molding, I negotiate the price I pay for resins all the time. What’s the difference if I’m buying resins or real estate???
  2.  

  3. I’m going to get a better deal if the listing agent doesn’t have to pay a co-broke. If I just contact the listing agent directly rather than working with a buyer’s agent then chances are the listing agent is going to go to bat for me and get me the best price he can. It really doesn’t matter that the listing agent has a fiduciary relationship with the property owner. The listing agent will work hard for me since he will be able to keep the full commission.
  4.  

  5. I have time to spare. I have time to conduct my own property search. I can spend just 2 hours per day calling on classified ads and searching Internet listings for a new building and maybe an hour or two at the end of the week driving around the city looking at different properties. My company may be growing like crazy thus the need for more space but the business pretty much runs itself so how busy could I really be???
  6.  

  7. I have an attorney for things like this. I can just pay my attorney to go over the paperwork provided by the listing agent and review any purchase documents. For $200/hour it’s a great deal rather than risking having to overpay for a property since the owner/landlord has to pay the buyer’s agent his commission along with the listing agent’s commission. I will just pay my attorney a little extra and have him research some comps to make sure the price is right.
  8.  

  9. I’m limiting myself by working with just one agent exclusively. I would actually make out better by calling several real estate agents in the area to let them know that I am looking for space. Now they are all out there working hard for me. If I work with just one exclusive agent, how will the other agents in the area know I am in the market for space???

Clearly you can see that a business owner could come up with several reasons he would not want to work exclusively with one agent to represent his needs when it comes to a purchase or lease of commercial space. What do you think?

Have you recently started looking for commercial space and have questions about the process of hiring an exclusive buyer/tenant rep? Please leave a comment below.

Are you currently in need of professional representation with a real estate transaction? Let me know how I can help…

 

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  1. Sandy says:

    This is a great post and goes for commercial as well as residential. I like your blog–haven’t seen many others about the commercial side.

  2. Rob Beland says:

    Thanks Sandy…please come back often.

  3. Louisville Realtor says:

    Great post, I think your 5 points hit the nail right on the head.

  4. JerseyShoreCommercial says:

    I work as a commercial agent and would never insist a client only work with me because (1) no agent can have access to ALL available listing in the market because a lot of commercial deals are marketed off-market and (2) I should have to earn a client’s business – not ask for a guarantee up front.

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