Whether you are buying, selling, or leasing a commercial property in Phoenix, Arizona, it is important to be represented by a commercial real estate agent. Someone with a real estate license in Arizona can sell both residential and commercial properties, so why use a commercial broker vs a residential realtor?
What’s the Property Worth?
A commercial agent could sell your home, but it wouldn’t be advisable as they don’t have the experience in valuing a home’s worth that a residential realtor has. In fact, most commercial agents turn to the expertise of a realtor when selling or buying their own homes.
On the flip side a residential realtor could sell your commercial property, but they don’t have the experience in valuing a commercial property that a commercial agent has. The figures that make up the value of a commercial property require full knowledge of the economic situation, cap rate, internal rate of return, and gross rent multiplier. Commercial real estate agents have a deep knowledge of finance that is essential when determining a commercial property’s worth.
It Is All about Connections and Resources
Connections and resources are important. A commercial real estate agent has relationships. with loan officers, appraisers, lawyers, contractors, and property managers that specialize in commercial properties
You won’t find most commercial properties through the residential multiple listing service. Commercial properties are generally listed through different networks like CoStar and LoopNet. A commercial agent has access to financial information resources, listing sites, property managers, and organizations outside the reach of residential realtors to assist you in selling, buying, or leasing a commercial property.
What about Rules and Regulations for Phoenix Commercial Agents?
Residential realtors are bound by regulations set out by the National Association of Realtors and other associations that are required in the area where they do business. These regulations include a strict set of ethics that are in place to protect all parties involved, from home buyers and sellers to the agents and agencies.
Commercial brokers are not required to belong to associations; however, commercial deals are made up of a series of contracts that are often reviewed by legal experts on both sides.
A commercial agent knows that high stakes are in play. For example, it is not unusual to have hundreds of thousands of dollars earnest money at risk in a deal. You want a commercial agent putting together a deal with contracts that protect you financially every step of the way.
Unfortunately, many of the commercial real estate cases that go to court are made up of residential realtors trying to do a commercial deal but struggle due to their lack of expertise regarding commercial real estate contracts.
Residential realtors can work part time as evenings and weekends are prime time for showing homes. Commercial real estate is a full-time, 9-5 job, Monday through Friday—what is generally referred to as bankers’ hours. That is no surprise as your commercial agent works in the hours of financial and business institutions as they serve as your trusted investment advisor.
Ready to Buy, Sell or Lease a Commercial Property in Phoenix, Arizona?
When it comes to commercial real estate deals, it is in your best interests to have a Phoenix commercial agent represent you. Their specialized experience with contracts as well as their relationships with loan officers, appraisers, lawyers, contractors, and property managers that specialize in commercial properties will serve you well.
Royal Commercial Real Estate is a full-service commercial real estate company. We represent buyers, sellers, landlords, and tenants with advocacy and diligence. Let us put our professionalism to work for you. Call 480-306-4399 or email info@royalcre.com.
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