When it comes to commercial real estate, the terms "agent," "broker," and "realtor" are often used interchangeably. However, each role has its distinct responsibilities, qualifications, and contributions to the industry. Understanding the differences between a commercial real estate agent, broker, and realtor can help you make an informed decision when navigating the commercial property market.
Commercial Real Estate Agent: Guiding You through the Process
A commercial real estate agent is a licensed professional who assists clients in buying, selling, leasing, or renting commercial properties. They act as intermediaries, providing guidance based on their industry knowledge and data analysis. To become a commercial real estate agent, individuals must obtain a state license through education and passing exams.
Commercial agents work under commercial brokers or real estate companies and earn a commission based on the completed transaction's value. They play a critical role in facilitating interactions between buyers and sellers, making offers and counteroffers, and ensuring all necessary paperwork is completed accurately. Commercial agents also keep their clients informed about additional steps required, such as property inspections or legalities, leading up to the closing of a deal.
Two Key Roles Fulfilled by Commercial Agents
Commercial real estate agents typically fill two roles: listing agents and buyer's agents. While it is considered a conflict of interest for one agent to represent both sides of a transaction, it is legal in some states. Here's a breakdown of the responsibilities for each type of agent:
Listing Agents
Listing agents represent property sellers and take charge of staging and showing the property to potential buyers. They handle open house showings, advertise the property on various platforms, and advise their clients on competitive pricing based on market research. Listing agents negotiate offers and manage all communications between the seller and potential buyers. They also handle the paperwork required for the sale and the transfer of property ownership.
Buyer's Agents
Buyer's agents represent clients looking to purchase commercial properties. They help clients identify their requirements and differentiate between wants and needs. Buyer's agents analyze data, such as market demographics, to find the ideal location for their clients. They schedule property appraisals and inspections and relay the results promptly. Buyer's agents guide clients through the bidding and negotiation process, ensuring a fair deal. Once the sale is finalized, buyer's agents handle all necessary paperwork for the property's ownership transfer.
Commercial Broker: Experience and Independence
A commercial real estate broker performs the same tasks as a commercial real estate agent but also has a license to work independently. They may hire agents to work under them and collect a percentage of their agents' commissions. Commercial brokers require additional training beyond being a commercial agent.
There are different roles within the commercial broker category:
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Associate Brokers: They work at existing commercial brokerage firms to gain experience. They usually do not supervise other agents.
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Managing Brokers: These brokers oversee the day-to-day operations of other associate brokers and agents within a commercial brokerage firm. They handle office management, transactions, and hire and train new agents.
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Principal/Designated Brokers: These brokers ensure that agents within their brokerage comply with state and federal laws.
Commercial brokers receive commissions from the sales produced by their agents and decide their level of involvement in each deal.
Commercial Realtor: Membership and Benefits
Unlike the previous two titles, a commercial realtor is not a job title but a professional membership. Commercial realtors are agents, brokers, or other real estate professionals who hold membership with the National Association of REALTORS® (NAR). To become a realtor, commercial agents and brokers must meet the membership requirements set by their local association and adhere to the NAR Code of Ethics.
The NAR Code of Ethics includes guidelines on ethical conduct, obligations to clients and customers, duties to the public, and interactions with other realtors. By becoming a realtor, commercial professionals gain access to prestigious networks, exclusive resources, and commercial Multiple Listings Systems (MLS).
Finding Commercial Realtors in Columbus, Ohio
When searching for a commercial real estate professional in Columbus, Ohio, it is essential to go beyond generic online searches. The Robert Weiler Company, with nearly 85 years of industry expertise, offers a team of skilled commercial real estate agents, brokers, and realtors. Their commercial brokerage firm provides unparalleled solutions for buyers, sellers, investors, and developers to find their perfect commercial deals.
Ready to explore your commercial real estate options in Columbus, Ohio, or the surrounding region? Contact a commercial real estate agent at The Robert Weiler Company by calling 614-221-4286 or emailing brokerage@rweiler.com.
Remember, understanding the differences between agents, brokers, and realtors can help you make more informed decisions when it comes to commercial real estate transactions.