Commercial Property Agents Differ from Residential Property Agents
You have your real estate license and now you have a decision to make, should you do into residential real estate or join the ranks of commercial property agents where the potential income is much greater. Only you know for sure, but if you do decide that the commercial side is for you make sure you are prepared before setting out. It is a good rule of thumb to make sure you have a years worth of living expenses in reserve because it could potentially take that long for you to get up to speed and start making regular commissions. Remember that in commercial sales you can not depend on your family and friends to get you off to a quick start with referrals as there is not much chance they will be looking to buy or lease office or industrial space. Getting started in real estate for commercial ventures can be a slow and gradual process.
If you do have the necessary reserves and you are interested in commercial sales then definitely start out in commercial. Sure you will get experience if you start out in residential sales, but the experience won’t really transfer over to commercial real estate sales. Everything from the property types to the contracts to the clients are vastly different and the faster you get familiar with the ins and outs of commercial real estate the better. Working in a commercial brokerage will get you off to a fast start gaining the experience and confidence you need to sell properties to commercial clients.
Ask yourself if you have the right mindset and confidence to work with commercial real estate clients? They are vastly different from residential clients who are typically emotionally motivated to make a purchase. Unlike residential clients, a commercial client is not likely to go to a property viewing and lease or buy just because they love the place. They will expect much deeper analysis of the location, the condition and the business value of the location and the property. They expect you, the commercial property agents, to do much of the due diligence on the properties you present to them.
Be prepared to be extremely patient as a commercial property agent. While residential sales often occur in several weeks, the commercial sale tends to be much more involved and lengthy. If you don’t feel that you are able to work with the same client for months at a time, to perform all the necessary research and analysis on the property and to work through the complexities of commercial property transfer then you might want to reconsider your choice of commercial versus residential sales.
If you have the necessary reserves, the proper patience and mindset and your confidence is high then commercial real estate can be a very rewarding and lucrative career. Aggressive, hard working and diligent commercial property agents can make a great deal of money once they get established in this niche. An agent who is very detail oriented, good at analysis and is able to negotiate fiercely is more likely to have success on the commercial side of things, while those who are able to generate emotional connections often do better in residential sales. Which type of sales person are you?