When it comes to real estate brokers, not all are alike. While it’s essential to always know if your best interests are being prioritized, it’s even more so for non-profits who don’t have much flexibility in their budgets. Before we can dive into how to know if your real estate broker has your best interest in mind, we must first break down how they get paid in a non-profit commercial property deal. Unless otherwise agreed, a Commercial real estate broker will work based on commission for transaction-based work.
HOW DO REAL ESTATE BROKERS RECEIVE COMPENSATION ON NON-PROFIT DEALS?
Just like working with for-profit companies, the money is earned through commission. Usually, a single commission is split multiple ways between the listing agent, buyer’s agent, and the broker who holds their license to practice commercial real estate. The amount of commission depends upon the agreement made with the listing broker. The process of money-making can be different between U.S. and global markets but tends to remain more or less the same within a single market.
DON’T NON-PROFIT REAL ESTATE BROKERS JUST WANT TO NEGOTIATE THE HIGHEST PRICE POSSIBLE?
Since brokers want to make higher commissions and non-profits are usually working with smaller budgets, how can these two ideas operate together peacefully? Well, there are multiple ways through which you can assure yourself that you are rightly guided and treated by the people you are conducting business with. Real estate brokers rely entirely on a commission of the sale or lease for their paycheck, but experienced brokers know helping to negotiate the highest price possible isn’t sustainable for their business. A broker’s business depends on three main things, repeat clients, referrals from past clients, and a reputation of integrity. Pushing for a high sale price, regardless of whether or not it’s good for the client, doesn’t align with any of these ideals. Good brokers want to find you the best deal possible while also providing exceptional customer service.
HOW TO TELL IF YOU’RE WORKING WITH A GOOD NON-PROFIT REAL ESTATE BROKER?
Good non-profit real estate brokers aren’t pushy.
If at any time you feel your broker is being too pushy or isn’t listening to your needs, this is a huge red flag. Non-profit real estate brokers should be there to provide knowledge but also to listen to your company’s needs. A good broker will know when to encourage you down a positive path and when to back off.
Good non-profit real estate brokers should readily give their opinions.
A real estate broker is there to serve you and negotiate positive terms for you, which means you are paying them for their knowledge. Therefore, a good broker will be one who readily shares their opinion with you and make the experience educational as you go. They are someone who provides their expert knowledge so you can feel reassured your interests are being cared for even if you don’t know what to ask.
Good non-profit real estate brokers always disclose if they act in a dual agency.
Dual agency is when an agent or broker represents both the buyer and seller of a deal. When this happens, the broker is forced to become a neutral party, which means the broker cannot share any confidential information shared with them by either party. There are advantages and disadvantages of dual agency. Most of all, it is important information is properly disclosed and both parties reach agreement on terms acceptable to them.
Good non-profit real estate brokers know the market you’re in.
Good brokers know their respective market.. Knowing the market is one of the most crucial skills in being a good broker. Knowing the market not only helps locate properties but it also helps know the value in negotiations, helps know what features to include in contracts, and can provide valuable non-public insight.
Good real estate brokers have good communication skills.
Communication skills are the glue to building relationships with not only the client but also other interested parties in any real estate transaction. A good broker must be an excellent communicator. This doesn’t mean they are available 24/7 when you call or email but that they get back to you promptly. They provide you with real information when you ask questions and utilize their network when they don’t know an answer to get the needed information.
OUR PHILOSOPHY FOR A GOOD REAL ESTATE BROKER FOR A NON-PROFIT ORGANIZATION
We want you to make a good investment in your future. This includes a facility that best supports the employees that make it happen every day and the clients you serve. Happy clients refer more clients, and our reputation is the one thing we take very seriously. We don’t just make deals; we make rapport worthy of our name and work. We focus on details and foresightedness. We want you to expand your organization and become the brand you desire.
We excel in commercial real estate, and we provide the excellent tenant and buyer representation. Just ask us! We have worked with multi-national companies, and we know the needs and requirements of commercial real estate. We use our means to do proper RND (research and development) in the market to give you the best of properties available. We focus on the key elements required by you instead of showing you every property on our list. We thoroughly believe in customer satisfaction and time management for our clients. We view ourselves as an extension of your team and together, we will make a well thought out decision for your future facility needs.