Real Estate Brokers

Getting the most out of your real estate broker

You are a corporate real estate executive or business owner and are about to select a broker to aid you with a specific assignment: selling one of your firm’s surplus properties.

Now What?

How do you assure your superiors, your shareholders and yourself that you will receive optimum results and the best
service that your broker has to offer? The answer is simple: Ask the right questions and require your broker to perform certain crucial tasks.

Questions to Ask –

From the first contact with your broker concerning the assignment, ask these questions.
The answers you receive will reveal whether your broker is competent, motivated, and likely to succeed.

  • What specific, recent experience do you have with this type of assignment?

  • What knowledge do you have about the specific market?

  • Where the property is located?

  • How will you solicit the aid of other brokers?

  • What success have you had working with local, regional and state economic development officials?

  • Which database listing services will you use?

  • Will your company create, and at what cost, appropriate marketing
    materials such as flyers, websites, For Sale signs, and electronic brochures?

  • What other service providers, such as surveyors, land planners, attorneys and appraisers, do you recommend and are their services necessary?

Services to Require –

Once you’re satisfied with the answers to these questions, direct your broker to perform certain tasks:

Broker’s Opinion of Value (BOV) – A BOV should present a current range of realistic values for the asset to help you set an appropriate asking price. The BOV is not an “appraisal” as that term is used by MAI Appraisers. Rather, the BOV value estimates should consider current local market momentum and include an analysis that translates past sales into present values. This evaluation should also consider a highest and best use analysis to reveal any potential, higher future values. Ask your broker to include an executive summary, a description of the surrounding neighborhood, an accurate description of the land and buildings, and a conclusion of value.

Marketing Plan – Your broker should also provide you with a Marketing Plan to dispose of the property. The Plan should address the primary and secondary strategies for marketing the asset. For example, the strategy might include a passive approach (erecting a sign and distributing flyers), an active approach (canvassing local, regional, similar users, and adjacent landowners), a structured bid (combining pre-sale due diligence with an auction structure), or some combination of these strategies.

Progress Reports – Establish a schedule on which your broker will provide you with periodic updates. These updates should address the progress of ongoing marketing activities, the names of prospects that have been contacted and/or shown the property, and any issues that have arisen concerning the potential sale. These reports provide a framework of accountability to ensure your broker’s ongoing performance.

Negotiations – You should always have the final word. However, you should ask your broker to take the lead in initial
negotiations with prospective purchasers all the way through a Letter of Intent. Although your attorney should be in charge of the preparation and/or negotiation of the purchase and sale contract, your broker should provide his or her experience in reviewing and commenting on the contract regarding the agreed business points and local customs.

End Result –

By asking these pertinent questions and requiring these specific services you will increase the probability that your
broker will render a quality performance and that your Company will realize the maximize return possible on final

Galaxy Partners is a national corporate real estate firm headquartered in Atlanta, Georgia. Galaxy provides Consulting, Transaction, and Management services exclusively to corporate clients throughout the USA.

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