How to Choose the Right Business Broker

If you want to invest in commercial real estate (buying a business), that means you need to find a business broker who can help you reach your individual goals and realize a good return on your investment. These are some questions successful entrepreneurs always ask themselves when they look for a broker:

Have I done my due diligence?

To increase your chances for finding the right broker, make sure the due diligence you perform on various broker candidates is as thorough as the one you conduct in regard to the commercial properties that interest you.

Have I established specific requirements for my broker candidates?

Be sure to establish guidelines for choosing a broker that include your specific needs and goals, and study their promotional literature, websites and brochures so that you can cross-reference them to find the most ideal candidate.

This may take a great deal of time and effort on your part, but the effect it will have on your bottom line will prove to be worth it.

What are this brokers qualifications?

Ask the commercial business brokers you contact about their education, certification and credentials as they relate to buying and selling commercial property.

Some of them may have years of real estate experience, but they should also be capable of adjusting to current buying and selling techniques.

Note that if a candidate is unfamiliar with how today’s technology affects market trends or investors’ buying pools, you could lose out on purchasing a property that deserves your attention.

How competent is the brokers staff?

You will need to know this, because you will then be able to determine if closing the deal will conducted efficiently and professionally. The broker you choose should have employees with expertise in a particular area who are also capable of making a transaction smooth and straight-forward.

Does the broker have a fiduciary interest in the property you are considering?

If you find that is the case, remove this person from your list immediately because he or she will be incapable of putting your needs first. Remember that there should be no ambiguity in a contractual relationship and loyalty to you should be your broker’s top priority.

As a rule, reliable commercial business brokers return phone calls promptly as a sign of their professionalism and courtesy toward their clients. They also have knowledge about the market that you lack, especially if they have been working in your area for some time.

In addition, the best brokers are so familiar with certain properties that they can provide information about a building’s history, present condition and past ownership that you will never find anywhere else.

How many brokers should I interview?

As many as it takes to ensure that you can do business together successfully. The broker you are looking for will be able to find commercial property that meets the business and investment criteria you have established.

Ideally, your business relationship will grow as you work together, and it is essential that you devote some time nurturing this business relationship for your mutual benefit.

Finally, some resources you can use to find commercial business brokers that are right for you include The National Association of Realtors, asking other investors for recommendations, reviewing print and electronic business periodicals, and information provided by investment associations.