We all know that old adage “there’s no such thing as a free lunch!” And it covers the ground for a lot more than lunch. Paying our fair share on the path to anywhere is not news; the key word is “fair.” So, although we know there are no free rides, sometimes it’s difficult to agree on that “fair” part.
Your Commercial real estate agent has a lot of ground to cover when finding the right match for your successful “sell” or “buy.” Because the lion’s share of your Commercial property agent’s work for you takes place outside of your presence, part of that “fair” equation is about trust – not visibility. Behind the scenes of your sale or purchase there is a support structure that directly connects to the reasons and rationales for your Commercial agent’s percentage of Commission, and record of success.
Just like any other “commodity,” we make our Commercial property choices based on our perception of “value received.” Furthermore, service only has substance in the final analysis of that value received! So, if your sale is successful and you believe you have received fair market value and a reasonable profit margin for your Commercial property, it’s easy to acknowledge commissions charged are commissions fairly earned.
On the other hand, if your sell price expectations are unrealistic for the specific Commercial property’s market – and you feel you are having to sell for less than your personal perception of its value – the commission can feel like a giant bee sting…
So, through what reasoning do Commercial real estate brokers set commission standards for their sales teams Obviously, consideration is given to the status of the overall regional marketplace, the median value of Commercial property therein, the growth potential, the impacts of natural disasters, the status of recovery and rebuild as well as the standards that are in play in adjacent competing regions. Paramount, are the skills and insights to correctly price all listings, based on those and other relevant facts.
Those factors drive the sales efforts and the essential performance requirements of the Commercial sales teams – which, in turn, drive the establishment of the fair percentage of commission. Commission substantiates value given and value received.
Obviously, a tough and depressed marketplace presents a tougher sales quotient; i.e., a good market for buyers. Conversely, a good and thriving marketplace presents excellent prospects (and advantages) for sellers! For your Commercial property agent, the tougher the market, the more effort and promotional output required – just when the customer wishes for a lower commission.
In either case, your Commercial real estate agent has a lot of work to do! A brokerage that provides an excellent support infrastructure is vital to your Commercial agent’s prospects for success on your behalf.
What do you get for the commission your Commercial agent receives? Much is so routine that its value is often overlooked! In today’s sophisticated and high-speed business environment, simple electronic assist has made a lot of the process seem of less value because of the impression of less volume! In the ponderous, paper-laden process of the past (where the “work product” could quite literally be weighed and measured) its effort was frightfully obvious!
With contemporary efficiency through the assistance of complex programs, Internet navigation and instant information retrieval and dispatch, everyone benefits. The Commercial realtor, sellers and buyers are able to save such costs as excess travel and staffing, to mention just two. On the flip side, there is the considerable cost of state-of-the-art equipment with programs and applications that are constantly evolving!
Highly successful marketing techniques, including superior showcasing of Commercial properties, give your Commercial agent a huge edge compared to yesteryears’ tools.
Person to person communication is no longer limited to a telephone, face-to-face and snail-mail. FYI data, photos, virtual touring, document transmittal and electronic signatures dispatch instantaneously. “Live meetings” right at your computer. That’s not news!
It is all part of the extraordinary value you receive from your Commercial real estate agent, their broker and a vast, handy network. Commission standards take huge expanded service capabilities and facilitation into consideration. In negotiating the terms for a Commercial property listing to sell, or for a search to buy Commercial property, ask your Commercial agent about their process and the value you can expect for the percentage of commission required.
There are pragmatic, tangible aspects to the services you receive – from signage to promo materials — and there are invaluable intangibles – expertise with today’s extraordinary computer programs, specific experience in the field, knowledge of the relevant marketplace and pricing accuracy for successful sells and buys. Both aspects – tangible and intangible require excellent communication skills and absolute accountability. Value given, value received for a fair percentage commission!
