No one can pinpoint a precise market number. Run for the hills if a broker represents that they know exactly what your property is worth.
That’s doubly so if a commercial real estate broker tours you through property and does not point out the defects, as well as the features.
So who can you trust?
Find a truthful broker
It’s reasonable when providing a professional opinion of value to estimate a sale or lease price range.
The exact final number is determined by many factors, including the wishes of both parties to the transaction.
Every property has pros and cons which can be partly determined by the needs of the occupant.
You want a broker who has the experience and transparency to bring to your attention every element of the property which could impact your desired end goal.
Transparency in car sales
I ran across research of transparency in The Globe and Mail recently.
“In a recent study published in the Journal of Marketing, researchers led by Yashar Atefi of the University of Denver observed more than 400 negotiations on U.S. car lots,” the article stated.
“When a salesperson revealed the invoice price of a vehicle – the amount paid by the dealership itself – that increased customer’s trust. In turn, car buyers spent an average of $1.400 more on add-ons such as extended warranties and insurance.
“The reason? Consumers can verify invoice prices with relative ease through online research. Once they determine a salesperson is honest in one area, they assume trustworthiness overall.”
Interesting, isn’t it? Transparency leads to trust, which has a great chance of leading to a long-term client relationship.
Integrity is essential
If I try to represent to a prospective client that I’m perfect, I’ll not be believable. No one is perfect and never will be.
There are times that things happen beyond my control that could implode a deal.
In most cases, I will try to inform the client right away, unless there is a significant piece of information missing. If there is a possibility the situation could evaporate within three hours with no consequence, I may choose to wait rather than prematurely alarm the affected party.
If the feedback I’m receiving on a listing is credible, I have an obligation to share that positive and/or negative feedback with my client.
I have heard on more than one occasion from vendors who have had their property listed with another broker for a period and were not provided real reports on the feedback from showings.
If you’re seeking representation from a commercial real estate broker who only finds ways to support your strategies, I am not your guy.