Q: As an owner of commercial real estate, what is the value of your brokerage analysis and specialist search to me?

Taking advantage of our analysis will maximize your chances of receiving top dollar when you sell by providing an in depth analysis of competing commercial brokerages and ensuring that you select from agents who specialize in the type of property you own. To fully appreciate our value, one must realize that the first call made to a real estate brokerage often creates obligations that have a serious impact on the selling process. For example, if you are considering selling your commercial retail center and the first call you make to a brokerage is received by an agent who has little experience dealing with that specific land use, chances are that you are already now working with an agent should you choose to select that firm when the time comes to sell. By taking advantage of our brokerage analysis and specialist search, we make it easy to compare competing brokerage firms and identify the top producing agents within, who specialize in the type of property you own.

Q: If I am a seller, how much will it cost to obtain your brokerage analysis and specialist search?

This is a free service we offer to all buyers and sellers of commercial property. Our fees are always paid by the brokerage you select and are commonly known as referral fees.

Q: What exactly is a referral fee?

A referral fee is real estate jargon terminology used to describe a situation in which one real estate brokerage agrees to provide another brokerage with an opportunity to work with a client who may be thinking about buying or selling. The referral fee paid by the brokerage firm comes out of (is not added to) the normal brokerage fee charged by the listing brokerage. The use of referrals is a common industry practice that occurs in up to 40% of all real estate transactions according to research referenced by The National Association of Realtors.

Q: Why do brokerage firms pay referral fees?

Brokerage firms pay referral fees because obtaining a referral and paying a fee is almost always more cost effective than other means of obtaining clients. Brokerages that are offered a chance at a referral are faced with the choice of taking the referral and paying a fee, or spending the time and money necessary to attract a completely new client. Due to the high monetary costs of marketing to new clients, the time it takes to create a marketing campaign and the risk that the campaign will fail, brokerages are happy to take referrals when the opportunities present themselves.

Q: Will the brokerage I select increase the brokerage fee they charge me in order to re-coop the fee they pay you for the referral?

Absolutely not! Competition among commercial brokers is the primary factor that determines brokerage fees to be paid by the seller. In fact, by taking advantage of our brokerage analysis, we make it easy to compare fees commonly charged by competing brokers and the services those fees cover. Also, as in any real estate transaction involving a brokerage, you as seller are in charge of negotiating your brokerage fee with the brokerage you have selected.

Q: What do you use as a basis for your analysis?

Our analysis is based on criteria that are proven to be indicators of success in dealing with your specific property type. A high volume of transactions involving a single commercial property use is one important criterion that is heavily weighted in most of our analyses. Depending on the type of property you own, the brokerages we identify may range from national retail experts to local land specialists.

Q: How do I know your research is objective?

The value in our analysis is our objectivity! By providing full disclosure of the referral agreements and fees we charge to specialized brokers, you can rest assured that no preferential relationship exists between your referral specialist and the brokerages identified in our analysis. The standard referral rate we charge is always 20% of the listing commission paid to the listing agent. In general, the listing commission amounts to half of the total commission paid to a brokerage firm. Since our referral rate is only charged on the listing side of the total commission, the selling side of the commission that is traditionally offered to buyer’s agents, still remains fully competitive with other properties on the market. In short, the listing agent is the only agent who will pay us a referral fee, and as we mentioned above, listing brokerages are happy to pay them.

Q: As a seller, am I obligated to select the brokerage and specialist your firm recommends if I take advantage of your analysis?

You are in no way obligated to select the brokerage or specialist we suggest for your brokerage needs. Part of our value is the ability to use our services for free with no obligation to us or any other brokerage. Also, while in most cases we are able to identify one or two preferred brokerages, our analysis generally covers eight to twelve firms that are competing for your business.

Q: What are typical real estate commissions?

Commissions vary, however, if agents you contact just instinctively say 6% or 7% then you should check with us before signing up. When commercial property values reach into the millions of dollars the commission rates are much lower. These commissions are not indicative of quality. Commercial property specialists work regionally or nationally and lower percentage commissions still yield reasonable monetary incentives to the agent/brokerage, especially when a high volume of transactions are being closed.