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6C — June 27 - July 10, 2014 — Mid-Year Review — 1 -( % 80%28-'
Real Estate Journal
B ROKER
By Brian Hosey, Marcus & Millichap Why hire an exclusive broker?
O
ur experiencehas shown that owners have three basic needs when sell-
and ultimately, a competitive bidding environment that en- sures the highest price. It is baf- ÁLQJWKHUHIRUHWKDWVRPHVHOOHUV choose to market their property quietly and not fully expose the offering to the marketplace. Sellers who market on an open basis consistently leave money on the table. When meeting with potential sellers, we hear all types of concerns, including sellers not wanting to be “tied up” or not understanding what the word “exclusive” means. Some own- ers feel that hiring an exclusive broker will limit them in some way and simply say “bring me
an offer.” Others have the false impression that marketing the property on an “open basis” will result in more brokers working on the transactions. Without proper representation, owners often leave money on the table and spend tremendous amounts RIWLPHDQGPRQH\ÀHOGLQJFDOOV sending packages and arranging showings. Owners that attempt to handle the sales process them- selves get renegotiated on price or locked into onerous terms that are not always in their best interest. Exclusive Listings Earn Higher Prices for Sellers It is a fact that owners who
hire a broker exclusively net more money during the sales process than those who do not. When hired exclusively, a real HVWDWH SURIHVVLRQDO KDV D ÀGX - ciary responsibility to act in the VHOOHU·VEHVWLQWHUHVW7KHDJHQW must perform in such a way as to secure the highest price and best possible terms for the cli- HQW7KLVLVQRWWKHFDVHZLWK open listings. When a broker brings a buyer to an open list- ing, that agent may actually be representing the buyer. In that scenario, the broker has been hired by the buyer to negotiate the best deal for him. Many owners don’t understand this
nuance. Hiring a broker exclu- sively to represent the sale is the only way to ensure that the agent is working in the seller’s best interest. It is no surprise that every day I receive calls from savvy investors asking if I have any “off market” or “quiet” deals. 7KHVH LQYHVWRUV NQRZ WKDW LI the building is not being mar- keted properly then it can be purchased at a discounted price. Proven Process Listing exclusively sends a message to the investment community that a seller is seri- ous and not just feeling out the market. Real sellers attract the attention of serious investors and 1031 exchange buyers. In order to mitigate their tax li- ability, buyers in an exchange often pay a higher price and close in a short amount of time. Once Marcus & Millichap is hired exclusively, a seller gains immediate access to the largest SRRORITXDOLÀHGEX\HUVLQWKH marketplace. We handle all of themarketing of a property and serve as a negotiation buffer with the brokerage commu- QLW\7KHH[WHQVLYHPDUNHWLQJ resources used in this process include: 'LUHFWPDLOPDUNHWLQJ WR potential investors 3URDFWLYHRXWUHDFKWREX\ - ers (calls, investor symposiums, e-presentations, property tours) 0DUNHWLQJ WR FRRSHUDWLQJ brokers $GYHUWLVLQJLQORFDOUHJLRQDO newspapers, business journals and trade publications LQYHVWPHQW SURIHV - sionals nationwide promoting the property to their buyers $FFHVV WR WKH ODUJHVW SRRO RITXDOLÀHGLQYHVWRUVDQG exchange buyers nationwide &UHDWLRQRIDQDXFWLRQOLNH environment that results in the highest possible price In our sophisticated invest- ment environment, it is impor- tant that a seller be represented by a real estate professional who will act in their best in- terest. Once hired exclusively, 0DUFXV 0LOOLFKDS KDV D À - duciary responsibility to create a competitive bidding environ- ment that results in the highest price and best possible terms for our clients. 7RÀQGRXWPRUHDERXWKRZ this process can benefit you, contact me for a complimentary analysis. BrianHosey is the region- al manager for Marcus and Millichap in NJ.
ing property. G e n e r a l l y sellers want: 7KH KLJK - est price and best possible terms
$ EX\H U who will per- form $SURFHVVWKDWLVVWUHDPOLQHG DQGHIÀFLHQW $QH[FOXVLYHOLVWLQJSURYLGHV DOORIWKHDERYHEHQHÀWVWRWKH seller, which results in maxi- mum exposure of the property, Brian Hosey
Exposure ) Expertise ) Results
Expertise Locally, Trusted Nationally Making a Market from Wall Street to Main Street
Below is a Sampling of Our Recent Closings
CLOSED
CLOSED
CLOSED
CLOSED
Single-Tenant Office Saddle Brook, NJ $5,567,000
Shopping Center Bridgewater, NJ $6,180,000
30-Unit Multifamily South Orange, NJ $3,750,000
Net-Leased Restaurant Morris Plains, NJ $1,231,000
CLOSED
CLOSED
CLOSED
CLOSED
18-Unit Multifamily Hoboken, NJ $4,000,000
Mixed-Use Pequannock, NJ $2,100,000
Net-Leased Restaurant Lakehurst, NJ $1,135,000
13-Unit Multifamily Union City, NJ $1,775,000
To access the investment market, contact the market leader. Brian Hosey Regional Manager (201) 582-1000 brian.hosey@marcusmillichap.com NJ Broker of Record: Michael J. Fasano (201) 582-1020
Offices Throughout the U.S. and Canada
www.MarcusMillichap.com
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