Coldwell Banker MM Parrish Commercial Division

Answers to Some of the Most Asked CRE Questions

Answers to Some of the Most Asked CRE Questions
Q
Why should I hire a commercial realtor as opposed to any realtor?
A
Commercial transactions are typically complex with a good deal of negotiation. While all Realtors are legally allowed to do a commercial transaction, very few “residential” Realtors have the knowledge to smoothly bring a deal to fruition. The legalities and protocols of commercial real estate are entirely different than residential. If you’re not using an actual commercial Realtor, one who ONLY practices commercial real estate full time, you risk legal complications, increased aggravation, and possibly the entire deal.
Q
Can’t I just sell my own property?
A
You certainly may but see above. Real estate transactions in general have become more complicated and fraught with potential problems. By using the skills of a commercial Realtor you’re statistically likely to get a better deal. Beyond that you should experience fewer headaches, have a more pleasant negotiation, get a faster end result, and are less likely to end up in court.
Q
How reliable is an appraisal?
A
As reliable as the appraiser. We’ve seen appraisals that are laughable. Not all appraisers have sufficient knowledge of the local market to give an accurate evaluation. Two different appraisers are likely to come up with different values for the same property. Commercial properties tend to be unique and resist easy appraising. Bottom line, use appraisals as a guideline but not as gospel.
Q
When I’m in a negotiation, what can I do to help the Realtor get me a good deal?
A
Listen to your Realtor. He or she has likely done dozens of deals of all shapes and sizes. Keep the negotiation civilized by not insulting the other party with a “low-ball” offer and/or unnecessarily onerous terms. Try to keep the dealings as unemotional as possible by removing your ego from the process. This is just dollars and cents.
Q
Should I use an attorney to assist me with the contract?
A
In general, absolutely. Contracts can be 50 pages long and filled with legalese. The cost is relatively low for the peace of mind you get in return. Your Realtor is most likely not a lawyer and should be relied on for guidance not legal advice.
Q
Can my Realtor provide me with a lease or contract?
A
Legally the only legal documents your Realtor is allowed to provide are the purchase contract and the lease approved by the Florida Association of Realtors in conjunction with the Florida Bar.
Q
What is a Letter of Intent (LOI)?
A
This is a simplified listing of the basic terms of a deal. It is used to establish the basics of a lease or purchase contract before involving attorneys. LOI’s are typically non-binding and will say so in the document. They generally save time and money.
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