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Originally Posted by I love boots.
Out of curiosity when someone signs on to your firm or Brandons do you tell them up front that commercial listings aren't acceptable? Or that if a new agent brings one it it will be someone elses listing or they will have to go elsewhere? I would be on board with how you do this as long as everyone knows it and I'm sure Brandons former agent didn't. Wouldn't this be fair?
It does prove the point I was trying to make. Simply that when pressured by a broker it takes about 5 minutes to find another one.
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Again you think you are qualified to sell all kinds of real estate. If you look at laws of agency, if you are not qualified to handle that type of transaction, you are not to attempt to list or sell the property.
You show that you think any agent is qualified to handle commercial property. Does the agent, understand commercial zoning and permitted uses in a certain part of the city. Does the agent know, how to do a financial analysis on the property, for a buyer to buy the property and lease it out. Do you know what expenses are going to be included for a property, and know if they are all included in a statement signed by the seller, or if some big expenses are left off. Do you know what expenses are tax deductible, and what ones are capitalized expenses and added to the base price (amount the owner has invested in the property and not tax deductible the year spent. Often a seller will leave half of expenses off, and as an agent you had better know if they are not included and make sure they are. Sell the property with half the normal expenses not showing, and you set yourself and your broker up for one heck of a law suite, and you will lose.
It is for those reasons, residential brokers usually do not accept commercial listings by there staff, when they nor someone in the office do not know all those answers.
And this is just the tip of the iceberg so to speak of problems caused by a house salesman/woman trying to list and sell commercial property without training in that field.
This is why intelligent brokers, that are not commercial specialists nor have one on staff, will not accept his agents listing property they are not trained and qualified to handle. It is agents like you, that get themselves and their agencies into trouble which can be a serious as big money settlements, and loss of licenses, when the agent lists property outside of their expertise.
When listing and selling homes, knowledge needed to handle commercial property, is not needed. But when you step up commercial, large residential rental properties, farms and ranches, as an example you are working in a different world, and need specialized training to handle those transactions. There are analysis packages the banks are going to want you to prepare before they will consider financing.
My first day in the business, I sold my first 2 year old upscale apartment house, to a former co-worker. My 4th day in the business, I sold the identical one next door. The next week I worked, I exchanged a 16 unit 3 year old upper middle income apartment house for the down payment on a 160 acre irrigated farm. Everyone of them, I had to do a full projected financial analysis on that particular property, using data provided by the owners, to use in the analysis. Could you do this, to satisfy accountants. Do you know the average expenses in relation to income that are going to be looked at to see if you have prepared a proper analysis. I have seen agents come to me to hire me to prepare these statements, and I was paid half of the office commission to do so.
I have had some of the top brokers in town, who had family owned income property they needed to sell to clear an estate, come to me and list the property with me because it was out of their expertise. Single family homes and developing they and their salespeople were tops in town. But when you went into commercial real estate they did not know what they were doing.
In all my years in the business, I only sold 6 homes as personal residences to help friends, but I have sold as many as 14 homes in one day to investors as rentals. 13 were in a 13 unit to be built subdivision, where a long time Broker and a small builder needed to pre-sell 5 of them, to get development and construction money. I sold them to investors at a discounted price, in one afternoon with 1 buying 5, and no one bought less than 2, all used as rentals. In addition an owner had offered me another home at a discount for an immediate sale at a good price, and I sold that to an investor for a total of 14 in 2.5 hours on the telephone sight unseen.
Yes you are right, with your license you can list any type of real estate. But an intelligent broker, is going to make sure you do not list property you have not training and experience listing, due to the dangers of being sued, if you make any mistakes, which are almost inevitable if you do not have experience in that field