Can A Residential Realtor Sell Commercial Property?
Real estate is a dynamic industry that is continuously evolving with the latest market trends as well as unique client needs. To many, indeed, the word “realtor” brings to mind smiling professionals showcasing family homes, showing first-time buyers through searches for dream residences, or placing sellers in the best possible market for their cherished family homes. But can a residential realtor successfully sell commercial property too? Well, the short answer is yes! A residential realtor can sell commercial property. About 30% of residential agents once considered breaking into commercial real estate to extend the circle of their service offerings according to recent statistics. One of the leading reasons for this was changed market demand. But should you hire a residential realtor for your commercial property needs? Continue reading to find out! Understanding Real Estate Licensure In New York, the requirements to obtain a licensed real estate agent are the same for residential and commercial real estate. One has to be at least 18 years of age, complete a 77-hour pre-licensing education course, pass a state licensing exam, and get licensed broker sponsorship. However, each state may have different rules that might hinder or enable a realtor to sell commercial properties. For instance, some local zoning laws and regulations add extra criteria or restrictions on which a realtor must manage when handling commercial deals. A Comparison Between a Residential and Commercial Realtor The difference between a residential realtor and a commercial realtor would be in property types, clientele, and expertise. A commercial realtor deals with business properties such as offices, retail, and warehouses, thus catering to businesses, investors, and developers. Transactions are often complex, requiring strong analytical, negotiation, and financial skills, with fewer deals but higher commissions. A residential realtor, on the other hand, handles people and families in search of personal properties, either houses or apartments. They perform fewer complex deals but quite frequently, taking smaller commissions and being very communicative and interpersonal. Both require the same license for real estate, though commercial realtors may pursue additional certifications. Responsibilities and Roles of a Residential Realtor A residential realtor does much more apart from the exchange of a property. The process indeed requires a lot in terms of expertise, strategies involved, and constant customer care. Now let’s go ahead to understand it in detail! Client Representation Realtors have the legal and ethical duty to place the interest of their clients above all other interests while collecting relevant information, which forms the basis on which decisions are made, and representing them through the transaction process. The Accurate Property Valuation Realtors will do intensive market research and comparative analysis with the purpose of precisely determining the values of properties so clients can make their best decisions on buying or selling. Effective Property Marketing Realtors plan a course of action, marketing property to attract prospective buyers: providing attractive and engaging property descriptions, supported by professional photography and ad exposures on multiple websites. Arranging and Conducting Viewings Realtors plan the logistics to make properties look their best; they answer buyers’ queries and provide minute details required for viewing. Skilled Negotiation Realtors are professional negotiators that ensure either the buying client or the selling gets the best terms in the process through skillful negotiation. Full Contract Management The most sensitive and critical part of the job is the contract management portion of a realtor. They review and prepare all the legal documents for their correctness; besides that, they ensure all financial and legal requirements are followed to protect their clients. Closing Process Coordination Realtors handle the final stages of the transaction like preparing the documentation and coordinating with the lenders, inspectors, and attorneys to ensure a smooth closing process. Why Do You Need a Residential Realtor? The need for hiring a residential realtor is that it adds expertise, insight, and time-saving resources to the real estate experience. Keeping their finger on the pulse of market trends, they identify opportunities best meeting their clients’ needs within their budgets. Realtors have listings through MLS, allowing more options to be available for the client’s property selection, some of which are not even openly available for purchase. Their well-established professional network, in contact with mortgage lenders, home inspectors, and contractors, ensures smooth and efficient transactions. Moreover, their negotiation skills secure favorable deals with least potential risks. The realtor saves their clients the hassle and stress involved in the process of buying or selling of a property as they prepare for everything from paperwork to property showing. Can A Realtor Master Both Residential and Commercial Real Estate? A realtor can surely handle both the residential and commercial real estate easily. However, one thing which must be taken up is that it will surely take a tremendous amount of dedication along with flexibility. While licensing requirements do not differentiate the same, the skills do surely differentiate in a lot of manners. For instance, residential transactions will basically take emotional decisions, personal needs on the other hand whereas for closing a commercial deal will be based on great insight related with financial analysis, zoning laws as well as complex lease negotiation skills. A realtor dealing with both markets must commit themselves to lifelong learning, thus keeping them updated with the constantly changing regulations and market trends. Once they have mastered both, they can do more for their clients and thus be more marketable. In any case, balancing the two requires maintaining competency in each to provide effective and quality representation. How to Choose the Right Residential Realtor Choosing the right residential real estate agent is important in achieving a successful real estate deal. Here’s how one can make a smart choice in this regard: Research and referrals: Ask for friends and relatives’ recommendations and narrow down the choices by reading agents’ reviews online. Evaluate Experience and Expertise: Choose agents with several years of experience who have a deep knowledge of the local market. If possible, interview several agents to compare their communication style and their marketing strategies.
by Mottek Group