© 2024 Real Estate Consultants of Colorado, LLC
Austin, TX
The cornerstone of REC's business is that, company-wide, we represent buyers and tenants only, no exceptions. People often ask us (a) why that matters and (b) why we are willing to forego the opportunity to make more money by representing both buyers and sellers; and tenants and landlords. Allow me to explain:
Brokerages that represent sellers and landlords almost always represent buyers and tenants as well. This means the brokerage has the potential to represent the buyer and the seller in the course of one transaction. If a company engages a broker to represent them for the search and negotiation of a new facility to lease - and the broker takes listings - he or she will be tempted to show his or her listings first. One of two scenarios ensues: the company either (a) dislikes the properties and questions why the broker showed them the properties when they did not meet their criteria in the first place; or (b) likes the property and then wants to lease it. The question then becomes: does the broker represent the tenant or the landlord? The broker should, in turn, do one of two things: (a) tell the company it should find a new broker, because he or she must continue to represent the interest of his or her listing; or (b) take a transaction broker designation with the permission of both the landlord and the tenant. The former will rarely happen, because the broker would be foregoing part or all of the compensation from getting the lease signed. The latter often happens but with negative consequences to all parties involved: to be a transaction broker means the broker cannot help either side; he or she can be a messenger only. This is a hard position not to violate, because any good broker's instinct is to talk through issues to find a solution. The result is that the broker will probably [unintentionally] violate the transaction brokerage relationship with both sides in the interest of getting the deal done and the party who is most likely to be hurt is the tenant, not the sophisticated landlord.
We started REC, a buyer rep and tenant rep firm, to eliminate this conflict of interest inherent in every full-service brokerage that represents buyers and sellers; and tenants and landlords. When a client engages REC, they know that protecting their best interests as the buyer or tenant will be our sole objective. We realized that, although we are foregoing the opportunity to work on half of the transactions out there, acquisition-side representation would allow us to better serve our clients. And when our clients are better served, the likelihood for positive results increases along with client satisfaction and, in turn, referral business back to REC. We are honored to work with the clients you refer us and are standing by to be a commercial real estate acquisition resource for you.
Contact James Hopkins 720-707-1538 jhopkins@rec-colorado.com
The cornerstone of REC's business is that, company-wide, we represent buyers and tenants only, no exceptions. People often ask us (a) why that matters and (b) why we are willing to forego the opportunity to make more money by representing both buyers and sellers; and tenants and landlords. Allow me to explain:
Brokerages that represent sellers and landlords almost always represent buyers and tenants as well. This means the brokerage has the potential to represent the buyer and the seller in the course of one transaction. If a company engages a broker to represent them for the search and negotiation of a new facility to lease - and the broker takes listings - he or she will be tempted to show his or her listings first. One of two scenarios ensues: the company either (a) dislikes the properties and questions why the broker showed them the properties when they did not meet their criteria in the first place; or (b) likes the property and then wants to lease it. The question then becomes: does the broker represent the tenant or the landlord? The broker should, in turn, do one of two things: (a) tell the company it should find a new broker, because he or she must continue to represent the interest of his or her listing; or (b) take a transaction broker designation with the permission of both the landlord and the tenant. The former will rarely happen, because the broker would be foregoing part or all of the compensation from getting the lease signed. The latter often happens but with negative consequences to all parties involved: to be a transaction broker means the broker cannot help either side; he or she can be a messenger only. This is a hard position not to violate, because any good broker's instinct is to talk through issues to find a solution. The result is that the broker will probably [unintentionally] violate the transaction brokerage relationship with both sides in the interest of getting the deal done and the party who is most likely to be hurt is the tenant, not the sophisticated landlord.
We started REC, a buyer rep and tenant rep firm, to eliminate this conflict of interest inherent in every full-service brokerage that represents buyers and sellers; and tenants and landlords. When a client engages REC, they know that protecting their best interests as the buyer or tenant will be our sole objective. We realized that, although we are foregoing the opportunity to work on half of the transactions out there, acquisition-side representation would allow us to better serve our clients. And when our clients are better served, the likelihood for positive results increases along with client satisfaction and, in turn, referral business back to REC. We are honored to work with the clients you refer us and are standing by to be a commercial real estate acquisition resource for you.
Contact James Hopkins 720-707-1538 jhopkins@rec-colorado.com
© 2019 Real Estate Consultants of Colorado, LLC