On October 10-12, Magnusson Balfour will be participating in the 2017 Maine Association of Realtors Annual Convention & Trade Show. Our principal, Scott Balfour, along with Craig Church and Dennis Wheelock, will be on hand in our booth on the trade show floor to meet and talk to other real estate brokers in attendance. We are excited to participate in this year’s conference, and look forward to establishing those essential working relationships between residential and commercial real estate professionals.
Collaborative relationships between residential and commercial brokers serve our clients best – setting their transactions up to be handled by the most qualified professional who will see them through from the contract to the closing table. At Magnusson Balfour, we would not take on a residential listing – it simply isn’t what we do best – we would refer the client out.
We’ve all heard the saying, “Jack of all Trades, Master of None”, and this holds true for those of us in real estate. While many of us try to be everything to every buyer and seller, the fact is that the most successful brokers know what they do best, and stick to that focus. The REALTOR Code of Ethics, Article 11, further stipulates that we do so:
“ REALTORS shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or services, or unless the facts are fully disclosed to the client.”
Residential real estate specialists certainly know their geographic areas well, and are familiar with the local market. However, if you are not knowledgeable about providing valuations on commercial properties, and business listings, and just as important, have access to the right information and resources necessary to formulate an accurate opinion about value, then you are not only violating the Code of Ethics, but you are doing a serious disservice to your client. The fact is, Residential and Commercial real estate brokers can have a very synergistic relationship referring business to one another.
More Accurate Comparables
Because we specialize in commercial real estate and business brokerage exclusively, we are members of several national databases used for valuation of all types of businesses. The subscriptions are very expensive, but a reasonable cost-of-doing business for our volume. These data sources give us a considerable edge in accurately assessing commercial real estate and going concern business values and providing comps, beyond the typical channels used in local, residential real estate valuation.
Better Marketing Resources
Similarly, our membership in national databases offer Magnusson Balfour creative avenues for marketing commercial properties and business opportunities. Most businesses need to be marketed differently than residential real estate, with confidentiality and other subtleties taken into consideration as an important part of promotion. Because of our business focus and reach, we can market business listing more generically while still reaching a broad audience. Additionally, marketing avenues that are obvious for residential real estate may not be the right places to market a commercial listing.
Smooth Transaction Process
All real estate professionals know that most transactions take finesse and the right experience to get them through from the offer to handing over the keys at closing. Shepherding a deal all the way through the process can be tricky! At Magnusson Balfour, we are used to determining if a buyer really can afford the business, handling SBA-7a financing requirements, and dealing with all the ancillary people involved in the process such as attorneys, accountants, and lenders. A whole new subset of people is typically involved in a business and commercial transaction that would not normally be included in a residential one.
Helps Our Businesses
Maintaining your specialty of residential or commercial real estate is just good business, and referring back and forth makes good sense. The clients get better service so they are happy, and the referring broker gets a referral fee for a closed transaction versus carrying a listing that lingers or never sells.
Stop by our booth! We look forward to seeing our residential real estate colleagues at the Convention next week!