Brokers Wanted: Nice to be needed
Apr 07, 2008
The year 2008 will be a year that real estate brokers in both residential and commercial real estate will be needed more than ever; and, as a result could have a successful year and build long lasting relationships with clients that would bring in more business. We in the profession always do best when there is uncertainty in the marketplace.
In residential real estate today both sellers and buyers need a broker’s help more than ever to make decisions. In a hot market a broker is less needed because sellers know their house will sell with little effort and buyers will know there is little room to negotiate. A broker’s role in a hot market is more of an “order taker” than a negotiator and consultant. In a hot market self service type real estate companies that promote owners to try to sell their own homes for fewer fees become more attractive. New agents with no experience come into the market looking to get rich quick and can actually sell a house or two with ease because of the need for so little negotiations. But in a soft market that's when the experienced real estate professional is needed the most so that both buyers and sellers can be guided to make the right decisions in such uncertain times.
The same occurs in commercial real estate. My best year in real estate still remains to be 1991. That was the year the country was facing a deep recession. Locally the San Francisco real estate market was still suffering from the earthquake of 1989. Things looked bad, but for me it was the year that I shined and truly established myself in this industry which has allowed me to carry forward relationships I developed in those hard times into deals for today.
Commercial real estate this year is going to need experience in its agents more than ever. Owners that bought property over the last three years are going to have a hard time achieving the rental numbers they had projected for these acquisitions. Tenants coming off leases signed five years ago are going to be hit with sticker shock. If we are entering a recession, businesses may simply be unwilling to pay higher rents in the face of possible revenue reductions in their own business.
Both landlords and tenants will need that extra voice from a real estate broker to guide them through this uncertainty.
Brokers look for the welcome mats it is your year to shine, grow and ultimately establish your presence long term in this business.
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Written by: Hans Hansson
Hans Hansson is President of Starboard TCN Worldwide Real Estate Services as well as a member of the Board of Directors for TCN Worldwide Real Estate. Hans has been an active broker for over 23 years in the San Francisco Bay Area and specializes in office leasing and investments. If you have any questions or comments please email firstname.lastname@example.org or call him at (415) 765-6897. You may also check out his website, http://www.commercialspacefinder.com/.