Working with an Agent

If you decide to use a real estate agent, realize that you can work with just one agent, or a team of them. Both choices have their pros and cons.

Working with many agents can be advantageous, in that one agent might know of properties the others do not, or might specialize in a particular type of property or area of the city. Although most agents use the same databases with the same listings of properties, many of them are specialists. Those who regularly sell residential spaces might not understand the commercial and industrial property market.

Searching for space is time-consuming, and requires a lot of work. You will probably get better results if you direct your time and energy toward carefully choosing an agent who understands your needs and space requirements.

Whatever route you choose, when you find a space, your agent will help you:

In General

• Find other professionals key to your real estate transaction, such as an inspector, lawyer or lender. However, it’s a good idea to have these professionals lined up before you start your search -- or at least have an idea of who you would like to work with, so that when you find a property, you don’t have to search for professional assistance.

Purchase-only

• Pull a Comparative Market Analysis Report (CMA), which will list information about the space you have in mind, as well as listed properties -- both sold and unsold – and their asking and selling prices. This information will assist you in writing an offer. See Chapter 17: When You Find a Property for more information.
• Write an offer based on the CMA, and negotiate the price and terms of the offer.
• obtain financing. Have your financing secured before you start looking for property. See Chapter 8: Buying Real Estate for more information on how to buy space.
• Work with you to define the terms of the sale, including which appliances or equipment will remain with the property, repairs the current owner will make, when you will take possession, etc.

Lease-only

• negotiating the terms of the lease.

Be careful of agents who:

• Do not listen to your needs.
• Consistently show you properties that do not meet your requirements -- an indication that they do not understand your space needs.
• Consistently show you properties listed only with their home real estate office or a colleague. While the agent might be personally familiar with these properties, you might end up missing out on properties that better suit your needs. You want an agent who goes the extra mile.
• Pressure you into accepting a deal that makes you uncomfortable. If you are not comfortable about a deal, then you need to decide whether to proceed or back off.
• Is not familiar with the community that interests you, as they won’t be able to provide valuable information regarding neighborhood life and character.
• Is not familiar with the type of space you are looking for. Even the best-intentioned agent may have difficulty meeting your space requirements if s/he is simply unfamiliar with the type of space you desire. In these situations, you’ll need to allow the agent a learning curve, or simply find one who specializes in the type of space you want.
• Immediately requires you to sign a buyer contract before spending time talking to you to assess your needs.

If you find a space you’re interested in before you find an agent, you might have to commit to dual agency. Illinois law stipulates that if you do not have an agent at the time you view a property, then the agent who shows you the space can legally represent both you and the seller in the real estate transaction. However, the agent must disclose to you that s/he is working as a dual agent.

If you are uncomfortable with a dual agency arrangement, seek other real estate representation, or be prepared to handle the transaction on your own. Proceed without representation only if you feel confident that you can personally handle the transaction with your attorney’s help. For more information about dual agency, see Dual Agency in Chapter 4: Professional Services.