The Value of Brokers in the Digital Age

With so many free resources available, small- to mid-sized real estate consumers may question the utility of a broker. Some may consider working directly with the listing broker. Although a case can be made to work directly, most real estate occupiers misunderstand the value of representation. Here are the key reasons a broker can help, even in the digital age.

Tenant & Buyer Representation

Listing brokers typically have strong relationships with their owners. A good listing broker can work a project for decades and will have a personal relationship with the client. In addition, the listing broker has a fiduciary responsibility to the landlord. A tenant or buyer broker will work to get their client the best deal possible and make sure they understand every element of the transaction. This creates clear representation for each side of the transaction and eliminates any bias.

Worthwhile Landlord Representation

Landlords can view paying commission fees as a way to lower risk. When a broker is hired, landlords increase their chance of securing a higher quality tenant. Most brokers can run credit checks, talk to previous landlords, tour facilities, analyze tenant financials and interview executives from the prospective tenant. They know real players versus “window shoppers.” 

Knowledge Versus Information

There’s no question consumers have access to information. With several outlets providing information on listings and comps, the information gap is narrowing. However, market knowledge and experience are the ingredients that cannot be found on these websites. Will the landlord give a TI allowance? Will they negotiate? Do they occupy a neighboring building? What kind of credit do they require? Rather than inquiring on several properties, a knowledgeable broker will point consumers towards feasible opportunities.

Objective Advice

“I have a broker but send me what you have.” Although brokers may appreciate the gesture, an issue is created. Instead of one broker presenting the market objectively, five are now blasting a consumer with every opportunity on the market. Each building is better than the last and a better deal can be made. Will this strategy land the client the best deal? It is better to have one broker who can objectively show you a full and detailed picture of the market.

Exceptions

Off market deals are a rare and highly sought-after commodity. If a listing broker brings a client a direct deal, an exception to the norm could be recommended to allow for the broker to represent both sides. Assuming an existing relationship, consumers should be able to trust the broker is a market expert who will honor their fiduciary duty in the dual representation.

A trustworthy broker will make the process easier, timely and more advantageous. They know what it takes to get a deal done. A broker will save consumers time and money, help avoid immediate and future pitfalls, and become a long-term consultant. Local brokers know their competitors, contractors, vendors, governmental entities and landlords. Brokers want future repeat clients and their reputation are at stake, so expect top service.

by John Viscounty
ASSOCIATE, INLAND EMPIRE
909.545.8002  .  JVISCOUNTY@VOITCO.COM  .  LIC. #02028915