Realtors aren’t allowed to sell commercial, right? If the idea is for you, a realtor to sell commercial real estate, then read on.
This may be the most common obstacle for real estate pros looking to expand their business. If you are already a Broker or licensed Salesperson, you learned early on that you could transact different property types. From Condos, to single family homes, luxury homes to duplexes and other residential income property, these were possibilities. Some agents may stick with one area such as condos, and others may sell them all. You could sell 1 a year or 1000 a year.
But no one ever talks about commercial. It’s as if commercial is some forgotten step-child or some magical unicorn that always escapes ones sight. Either way, it doesn’t get your mind share.
As a commercial broker and educator, I hear most often from residential agents about how they cannot practice Commercial real estate because: “I don’t have a Bachelor’s degree”, “I am not at a big Commercial Firm”, “My office doesn’t have any support for commercial agents”, “Commercial agents are jerks and have no time for my clients or referrals”, “It’s a good-old-boys club and I don’t belong”.
And that’s just what they want you to believe. We all know about what “they” say.
THE TRUTH is this: The barrier to entry to commercial real estate is the EXACT same barrier to entry as Residential, you need a license issued by your state.
Now to be licensed, and be effective are two different things. To be effective you must in addition to your real estate license. 1) You have to understand how the business/industry works. 2) You must have an understanding of the property type you are dealing with. 3) Be able to communicate effectively with the client and other professionals 4) you must know how to problem solve and help advise the client. 5) Be able to bring the transaction to a close.
Does commercial legally require more certifications or special training? No. However, you will be better off with proper practical education and training.
Does it require knowing someone on the “inside” to get involved? No.
The barrier to keep you out of Commercial is all perception or lack of knowledge. The industry has been manufactured to insulate “them” in, and keep you away in safe distance from the playpen. There’s a lot of money to be made in commercial deals, often 6-figure commissions. And there are many who want to keep these large deals to themselves.
The question remains: Is it possible for you, the residential pro to add some commercial component to your business? The answer is Yes. How much commercial property you wish to incorporate into your business is entirely up to you, a discussion topic for another article.
Do you need to stop your residential business cold-turkey? No.
Keep in mind before you start you do need to know what you are doing. We all know what can happen when we “ready-fire!-aim” no matter what venture considered. Flying by the seat of your pants generally only works out well for superheroes discovering their new-found abilities!
Transactions are done a bit different in Commercial, such as the process of submitting offers or showing property for example.
To get your commercial career up and rolling here are some wise suggestions:
Good luck and don’t forget to sign up for our free Vault video training. The first video is the “Top 7 Mistakes Realtors Make When Attempting To Sell Commercial Property, and How To Avoid Them.”
To your real estate success,
Residential Agent turned Commercial Agent