Do you need a commercial buyers agent for multi-family properties? It is a 5 unit property.
no, you never "need" a buyers agent. in commercial it is common to only have a sellers agent, but it could help your credibility to have a agent represent you if this is a competitive deal.
@Colten Adams you don’t need it. Educate yourself on the buying process and build direct relationships with the brokers that sell in your market. You can communicate your message and credibility better than anyone else. When buying you want to be communicating as directly with the seller as possible. A buyers agent works like another person in the telephone game in school and distorts your message a little bit more.
@Morgan Eriksson If I did decide to get a buyer's agent, would the commission come from the seller or buyer? I've heard it's usually a smaller percentage from the buyer.
@Kent Ritter When doing a walk through on a property like this for the first time, what are some things I should look for. Do you have questions you regularly ask the sellers agent?
1. Why are you selling property?
2. Are there any known problems with the home?
3. Have there been any changes in the price of the home?
4. Average utility costs?
5. How long has the home been on the market?
6. Have there been any other offers on the home?
7. Timeline seller is aiming for?
8. How is the neighborhood?
9. Have there been any renovations or updates made to the home?
10. Rent prices? Are they at market value?
11. When do leases end? Are the leases month to month?
12. Individual meters for each utility/unit?
13. When was the roof last replaced
14. How’s the foundation look
15. When was the water heater last replaced?
16. Central air?
17. Electrical up to code?
18. What work does the property need?
@Colten Adams I don't see that as being a serious need as it would be in the sfr space. Typcially in the commercial space, it's going to be a different kind of buyer than in sfr. mfr buyers are more sophisticated and are investors. I would stay away from signing an exclusivity agreement with a broker. By signing this agreement whether they find the deal or not, you always have to pay them a commission. Most importantly I would focus my time and attention on building a solid foundation by studying every phase of this business as much as you can.
Commission is paid by the seller, most of the time. Anything on market the commission is negotiated with the seller in the listing agreement. If the seller is moving the property themselves then they will most likely not be willing to pay your buyers agent. A great buyers agent should still be willing to help you and lend advice in hopes of establishing a relationship moving forward. If you choose the right buyers agent then it can only help you and at no cost to you.
@Colten Adams the commission is typically paid by the seller, some times though if they find you a pocket listing or something like that they might have to build their commission into your offer so they get paid. Again you don't need a buyer's agent, but if you're in a competitive market and haven't established a reputation yet I'd get a agent.