5 Questions To Ask Your Commercial Agent - Questions Agents Hate!

Picking the right agent is one of those critical issues that can cost or save you tens of thousands of dollars. Many agents would prefer that you don't ask these questions, because the knowledge you'll gain from their honest answers will give you a very good idea about what outcome you can expect from using this agent. And let's face it - in real estate, as in life - not all things are created equal.

Hiring a real estate agent is just like any hiring process - with you on the bosses side of the desk. It's critical that you make the right decision about who will handle what is probably one of your largest financial investments in your business.

Not all real estate agents are the same. If you decide to seek the help of an agent when renewing a lease or leasing new premises, you need some good information before you make any moves.

Your choice of agent can greatly influence:

(a) the number of buildings you have to choose from;

(b) the quality of information and guidance you receive;

(c) the rent you pay; and

(d) the quality of the office building you lease

(e) the air quality and heating and cooling in your office

(f) whether or not you will be affected by clauses in your lease that can either help or hinder your business in the future

5 QUESTIONS TO ASK BEFORE YOU HIRE AN AGENT


1. What makes you different? Why should I hire you? It’s a much tougher real estate market than it was a decade ago. What unique systems and programs does this agent have in place to make sure that you lease your office for less cost, less risk and less hassle? Don’t be impressed with sales skills which are less important to a tenant than are a reputation for hard work, dependability, market knowledge, superior negotiating skills and a systematic approach to getting your company the best deal.

2. What is your company all about? If the agent has a large office with an international presence this will be of benefit to you if you have offices in many countries. If not remember that like politics all real estate is local and the person you deal with in the local market must have the skills, contacts and abilities to do the job. Quite often unless you have a very large requirement, you may find that a large firm will assign a junior agent to deal with your company.

3. Have you got experience with companies like mine? Check out the agents references to find out if he or she has helped companies in your size range or industry type.

4. Do you or does your company take listings from landlords? If the company is a large company it will likely have many listings and even if your agent does not take listings he or she will become a dual agent if you end up dealing with one of the company listings. Ask the agent how he or she plans to deal with this. Some questions to ask?


Can you please tell us the benefits of consenting to dual agency?

Please explain how the fiduciary duties you usually provide as an agent are limited by dual agency.

Given a choice between working with a dual agent and one who represents us solely, which service choice best serves us and why?

The answers should be illuminating as new laws are in place that make this mandatory to disclose. Most companies get around this by inserting fine print in their agreement which discloses this can happen but do not fully explain this in their sales presentations to tenants for obvious reasons. Later when it does happen - it's often too late to back out and get another buyer agent.

At best, by law, this agent will no longer be your agent but rather a facilitator shuffling documents back and forth and limited by law from acting in your best interests? In smaller markets you may have to settle for this type of agent but in large metropolitan areas there are agents who specialize in working with tenants exclusively.

Experts including consumers organizations and the MLS/ICX Website advise working with such an agent if you want your agent to be working for you under all circumstances. The worst possible outcome is that your agent does take listings himself and you end up dealing on his listing for your office space.

5. Do you have a reference list of clients I could contact? Ask to see this list, and then proceed to spot check some of the names.

Evaluate each agent’s responses to these 5 questions carefully and objectively. Who will do the best job for you? These questions will help you decide.