Why You Should Use a Real Estate Broker

May 30th, 2014

By:  Leonard A. Bellavia, Esq.

Senior Partner, Bellavia Blatt, PC

Many of our clients come to us with the same question…Why do I need a broker?  In our experience, we have found that private sellers often and perhaps even naively believe that an advertisement in a newspaper or trade publication alone will uncover a buyer ready, willing and able to make a deal.  Unfortunately, too many of those ads go unanswered or even worse; a semi-serious buyer puts you through all of the motions only to back out at the last minute.  Sellers who want to achieve the greatest return on their investment should consider using a real estate broker.

It has been our experience that brokers typically bring about the most favorable deals available for their clients.  Some of the most vital reasons for using a broker include:

  1. Brokers are obligated to seek the most exposure possible for their clients: Using a broker will considerably expand the pool of potential buyers.  Brokers utilize extensive client lists and cooperative networks to spread the word about available businesses.
  2. Up to date information on market conditions:  Brokers can provide the latest information on the current marketplace including price, financing, terms and conditions of sales of comparable businesses.  Such an understanding of the marketplace will position you to maximize your gross profit.
  3. Helpful advice to significantly enhance marketability of the business: Over the years we have learned that an experienced broker can offer objective recommendations on how to improve the business to make it more marketable.  Their insight into what buyers typically want can help you to make the right improvements before the business is offered for sale.
  4. Pre-screening of prospective buyers to ensure the most qualified clients:  Nothing is worse than negotiating a deal only to learn that the buyer is not qualified.  A broker can help you to objectively evaluate prospective buyers before you enter the negotiation stage.
  5. Knowledgeable staff to help answer all questions along the way: A broker earns his or her commission by bringing about a meeting of the minds between the buyer and the seller.  Selling a business is a highly complex transaction and even the most experienced seller will have many questions. Brokers can help to answer those questions and facilitate the closing of the transaction.
  6. Maintaining Confidentiality:  Many of our clients prefer to use brokers in order to maintain their anonymity.  Public knowledge of a sale could put future sales at risk or damage the businesses reputation.  A broker can seek out potential buyers behind the scenes without initially disclosing the name of the seller or the seller’s business to the general public or the seller’s employees.

It is of critical importance to be aware of the fact that each party to the transaction, including the broker, is entitled to have an attorney representing their interests. The attorney representing any of these other parties is not your attorney. It is your own responsibility to seek the professional advice of an attorney to protect yourself and to make certain you reap the benefits of the deal you bargained for.

For more information on whether a broker is right to handle your transaction call Leonard A. Bellavia, Bellavia Blatt, PC at 631-224-7000.

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