Property agents or direct sale: how do you choose the right route?
First, let's be clear: what we do and don't do
We are not an estate agent. We do not mediate and we do not put your property on the market for sale. We purchase properties ourselves: commercial premises, retail and catering units, multi-let properties, student housing and other commercial real estate. That means we aren't going to pretend below that the estate agent route is bad. For a portion of properties, that route is simply better, and we will say so if that is the case.
What a commercial property agent adds
A good commercial estate agent does four things that are worth money: scouring the market for the right buyers, presenting the property professionally, negotiating without emotion, and monitoring the process until completion at the notary. For a marketable property in a sought-after location, this exposure can result in a higher price than a single offer, simply because competition arises between buyers.
When choosing, look for: demonstrable transactions in your specific segment (offices are a different profession than multi-let housing), affiliation with a trade association or register, the duration of the instruction, and whether the instruction is exclusive. Also ask for the average lead time of the last five sales in your segment.
When that route works less well
In practice, we see four situations in which a public sales process runs slowly:
- Properties with a small buyer base. A multi-let property with tenants, a commercial hall with a specific zoning designation, or a retail unit in a street with vacancies attracts few candidates.
- A property with a story. Overdue maintenance, asbestos, soil contamination, an expiring permit: every question mark costs viewings.
- Haste. In the event of a divorce, business closure, inheritance or refinancing, a process of six to twelve months is not workable.
- Privacy. As soon as the property is on the market, tenants, staff and competitors know about it.
The comparison on four points
Our honest advice
Do you have a marketable property, no rush and a healthy market? Then hire an agent who truly knows your segment. We regularly say this to owners who call us, and that sometimes costs us a transaction. Do you have a property with tenants, with a defect, with a specific zoning, or do you simply need certainty regarding the date and amount? Then a direct offer is worth considering.
The beauty is that you can make the comparison for free: request an indication from an agent and a concrete offer from a purchasing party, and place both side-by-side with the net proceeds and the lead time included. You can read more background on the role of agents on our page commercial property agent.
Three questions to ask both parties
- What is your estimate of the net proceeds, not the asking price?
- On what date can completion take place, and what does that depend on?
- What costs do I pay if the process does not lead to a sale?
The answers to these three questions say more than any brochure.
Compare for yourself: request a no-obligation offer for your property.