How to Choose an Industrial Property Broker

How to Choose an Industrial Property Broker

Category Advice

Brokers get often get a bad rap, leading some to question whether they should buy direct. This reputation has arisen for a number of reasons, such as divergent quality of service (with some brokers having in-depth property knowledge and others having no specialised area of focus). Another reason is that many are unable to distinguish the good brokers from the bad ones. But we believe that not all brokers should be painted with the same brush and so, to address this issue, we've written up a few tips on how to choose an industrial property broker that will add value to your property purchasing or selling experience.

In selecting a broker, we suggest you ask yourself the following questions:

1. Does he or she have a good name in the industry?
2. Does he or she specialise in the area where the property is situated?
3. Do they have a lot of experience in the industry or are they being mentored by someone who does?
4. Do they care enough to get a good understanding of your requirements?
5. Do they go the extra mile to assist even if it means going beyond what one would normally expect of an agent or broker?
6. Are they registered with the Estate Agents Affairs Board and have a fidelity fund certificate?

A good broker should add the following value:

To the Landlord or Seller

1. Be able to provide a good idea of current market values or rentals in the area so that an optimum price can be determined. The disadvantages of selling or leasing at a price that is too low are obvious but clients can also lose a lot of money if they price their properties too high.
2. Be able to provide a good idea of future plans for the area
3. Give guidance and assistance with items such as re-zoning, sub-division, facilitating services and connecting with relevant contacts where appropriate.
4. Attract buyers and tenants through appropriate advertising but also by being accepted as the area experts.
5. Most of all, a good broker should obtain optimum value and this is frequently done by bringing the right clients at the right time.
6. The aim should always be to provide a return or a service that exceeds the value of the commission but, because of the nature of the business it doesn't always work according to time spent on a particular property. Because of the nature of our business and the area that we operate in, we sometimes work on a property for over 10 years but we may conclude another very quickly. This is normally because of all the years that we have spent in the area, although perhaps not on a particular property.

To the Tenant or Purchaser

1. By gaining an understanding of the client's requirements, a good broker should be able to offer the best matches.
2. By specialising in an area of expertise the broker should be able to offer the widest range of options that may suit and therefore provide best value.
3. A good broker should know and understand future plans for the area so that they can assist and inform their clients.
4. They should go the extra mile to assist their clients to make the best decision and also to assist and advise regarding other matters relating to the property or to the client's relocation.

Author: Samantha Anderson