using commercial buyer's agent

[Brian T. Grooms]

So I am looking at a commercial piece of property to use on my own behalf ( that is the primary plan anyway). I have found a unique property and have communicated with the seller directly. This property is not listed and there are no agents involved. This is not a cheap area or property so it will be a large investmen for me (1mil-2mil). I am still a real estate novice and am wondering if in addition to using a lawyer for entity formation and to do a purchase contract, should I use a buyers agent to represent my entity that knows this area well and is experienced in commercial transactions in this area? I am not sure what we should offer initially in our purchase contract so that we can lock up the property to then begin a feaseability study and do due diligence.

[Howard Abell]

I believe you should engage a local commercial real estate broker. For full disclosure I am a licensed broker specializing in commercial property. The broker will be able to shepherd you through the contract, due diligence and closing phases of the process. Payment can be in various ways and is negotiable. You might ask if he/she would work for a consulting fee as you have already found the property and the seller might not be inclined to pay a broker. If the broker would rather work on a fee based on the value of the property and chance that the deal will not go through than 1-3 percent of sale price would be typical.

Good luck.