Residential agents that have an opportunity to take a listing or represent a buyer / investor of a commercial property can find it very challenging. However, in a lot of smaller markets almost every agent will be asked to list a piece of commercial property. It may be a friend or a friend of a friend or it may be that you have a good reputation in your market area.
While most agents are eager and anxious to list a piece of property, they can also be a little intimidated by the process. While commercial property is still just real estate there are some differences from a residential listing.
When listing a home you know what questions to ask and what information to gather in order to properly market the property. Normally you would not need to know if a home had a 480 amp electrical service and or why that might be important. Zoning might also be an issue along with a lot of other issues. Financial aspects, except for a mortgage balance, of the property, are also an issue that you normally do not need to deal with when listing a residential property. When listing any investment type property gross and net income on the property will be very important in your marketing effort. The current NOI (net operating income) will also be important in helping the owner agree to a saleable listing price. You may have done 100 CMA’s for home sellers but doing a CMA or market analysis for commercial property requires different information and more of a challenge for a residential agent that hasn’t been involved in that process.
It is often hard to find comps in smaller markets and it is sometimes necessary to look outside your market area. A lot of commercial agents do not belong to any kind of MLS which makes gathering information more difficult. In short, commercial listing might require more time and energy in the beginning but it can also be very rewarding both financially and professionally.
If you find yourself wanting to stick your toe in water and need some help, give me a call. It’s what I do.