Choosing A Specialist Broker To Sell Your Property

Choosing A Specialist Broker To Sell Your Property

When you want to sell a real estate property, one of the key decisions you'll make is choosing a broker. You might be wondering whether to work with a broker who covers all property types and a wide area, or one who focuses on a single asset class or neighborhood. The choice can significantly impact the outcome of your sale. You’ll want to work with a broker who can help you maximize the value and get the highest price for your real estate.

Specialist versus Generalist

In my book, “The Insider’s Edge to Real Estate Investing,” I discuss finding a broker and building a relationship in Step 2. The phrase, “Jack of all trades, master of none" rings true in the real estate world just as it does in other industries. A generalist might not know as much about a particular asset class, and thus not be able to provide detailed information to drive the sale.

When I started in the business 25 years, I worked at Massey Knakal, and the founders had developed a territory system where each broker got to know an area thoroughly. My area was Chelsea, and I spent the initial months of my career learning everything about the neighborhood. I gained insight into property owner information, leasing trends, and zoning regulations. After doing so, I could outperform other brokers who were generalists even though I had less experience.

Working with a Specialist

You’ll find that a specialist broker typically has established relationships with key players in their niche. These connections can help you navigate complex transactions and gain access to properties that aren't widely advertised. Their network can include property managers, other investors, and local business owners. They often don’t have to start from scratch when identifying buyers. They will usually already have cultivated a list.

Finding a sales broker who specializes in the asset class you’re selling is also very important. In New York City, for instance, the intricacies related to multi-family housing are very complex. If you’re selling a multi-family property, a broker who focuses on that property type will better understand the nuances related to the housing programs.

Unlocking Value

When I interviewed Margaret Streicher, CEO of Fortitude Capital for my podcast, she related a story of buying a property in New York City. She spotted a code that would allow her to build a carriage house in the back of the property. After purchasing the property, she added the structure, which significantly increased the value of the place.

In the same way, brokers who specialize can often help you find ways to unlock the value of property. For instance, if you’re looking to sell an industrial property, a broker who only works with industrial assets in an area will be aware of the type of tenants you could attract. They would also understand the importance of features such as ceiling height, column spacing, the vintage of the building or loading base. Perhaps you have a building with 16-foot-high ceilings. The broker specializing in industrial might know if you can raise the roof and thus attract a different profile of a tenant that could generate more income. Even if you decide to not raise the roof, the idea can be mentioned to buyers. By showing where value can be created, you can maximize the sales price.

When it comes to selling a real estate property, choosing the right broker can make a difference in the outcome. Opting for a specialist broker who focuses on a specific asset class or neighborhood can give you an Insider’s Edge. Their expertise often translates into a deeper understanding of the market, stronger relationships with key players, and the ability to unlock value in your property. Ultimately, they could help you achieve a price that fits into your business plan and the market conditions.