Purchase & Sale AgreementNobody can force a seller to do anything. Period. It is up to the seller to agree if the price, financing, and closing period are acceptable. It is up to the buyer to make an offer attractive enough to interest the seller. A good broker will help the seller interpret the meaning, intent, and consequences of a complex offer. A good broker can also help an interested buyer structure an offer so it is more attractive than other offers on the table. It is rare for a commercial seller to field a single, all or nothing offer. There must be a meeting of the minds between seller and buyer for a deal to close.
In the current marketplace, some buyers feel that they have more power than in past decades. Not true. Buyers have more choices than ever before. The only power buyers have is the ability to find a better deal somewhere else.
In the commercial marketplace, the unrepresented tenant is a turkey waiting to be plucked. Or, as the lawyers say, a person who represents themself has a fool for a client. There are endless types of leases, property insurance plans, fit-up allowances, square foot measurements, parking requirements, and locations. Each set of circumstances is unique, but it follows a pattern. A good broker understands the financial relationship of one lease element to another. A good broker also knows the current marketplace, current rents, current terms, and desirable locations. The difference between hiring a broker or representing yourself can cost a small company tens of thousands of dollars over a five year period. The small amount money spent on tenant representation is repaid many times in savings.
Are you a client or a customer?You are a customer until you sign a written legal agreement with a commercial broker asking them to represent you. A Customer’s conversations with a broker are not confidential. At RE/MAX Shoreline: Commercial Brokerage, we do not represent people for free. You would not ask a plumber to fix your furnace for free, or a doctor to perform an operation for free, or a lawyer to advise for free, or an accountant to prepare a tax return for free. Likewise, we do not offer hard-earned information, valuable time, experience, and advice for free.
If you become a client, you will be treated with love and respect. If you are a customer, you will only be treated with honesty.
Some business owners call five or six commercial brokerages, laying out their needs, explaining their budgets, and revealing their confidential negotiating strategy to complete strangers over the phone. The brokerage companies represent the Landlords. In laying out the budget range, an approximate size of space, and future timing, the customer has given away valuable negotiating information.