Residential real estate agents and commercial property agents hail from the same field. The one obvious similarity is that both agents deal with property. The distinguishing factor becomes the type of property each specializes in. Residential property agents deal with the buying, selling and renting of property for one’s personal use. A good example of residential agents is Reeds rain and Premier residential lettings in Manchester.
Commercial property agents, on the other hand, handle business or investment use of real estates. These agents represent investors who wish to buy and sell a property by advising them on risk matters and ensuring they get ROI. They also find new spaces for client businesses and carry out leasing of properties. An excellent example is Knight Frank commercial property agents Manchester, London etc.
Now, to expound other differences, we would have to consider several factors. For starters what skillsets do they have? What type of transaction do they deal with and what is the nature of the property they deal with etc.
Skillset.
Let’s begin with the most basic component that determines a residential agent ability to sell commercial properties. Selling a property requires certain skills that both agents; residential or commercial must possess. Agents are expected to be patient, courageous and able to communicate effectively. However, these skills are not enough, selling commercial properties require an in-depth understanding of economic matters. Commercial agents deal with properties that necessitate them to have knowledge on aspects such as gross rent multiplier, cap rate, Internal rate return, etc., concepts residential agent might not be familiar with. Nonetheless, in instances where residential agents are conversant with commercial property components, commercial transactions can be made. Take for example a residential agent with vast knowledge on cash flow analysis, rent rolls, cap, and internal rates. These skillsets put him/her in a position to transact commercially.
It is important to note that there are agencies that are both residential agents and commercial property agents. An example is Candrproperties.co.uk commercial property agents Manchester. It is a top-rated agency in Manchester that specializes in both real estate and commercial property. Their agents/ property consultants are trained in all aspects of the business to provide an innovative and personal service to all their customers and clients whether they are buying, selling, renting or want advice on property investments.
Nature of property.
The nature of property is another key determinant. It addresses aspects such as the number of dwelling units, type of building, size etc. If you wish to sell or buy a property with more than four dwelling units, you might need a commercial property agent. To secure such kind of deals one needs to secure commercial real estate loans which have restrictive processes and technicalities that might be difficult to be carried out by a residential agent. Contrastingly, deals that do not require deep commercial knowledge can be successfully carried out by residential agents. For example, a residential agent in Manchester can value a small commercial property using comps. Assigning this type o transaction to a residential agent would benefit an investor because of the attention it would be awarded by the agent. A commercial property agents Manchester who is equipped with handling bigger transaction might arguably not award small deals the seriousness it deserves
Partnering with a commercial agent
A residential estate agent can sell commercial property by working hand in hand with a commercial agent. Working with a commercial agent not only offers independent analysis but also helps achieve the highest possible rates for the client.
A drawback for qualified residential agents is the issue of databases. Most commercial companies keep their own database of available lease spaces. Therefore, a residential agent who is qualified might not have access to this “private” mls of lease spaces.
Wrap up
In conclusion, it is evident that there are instances where residential agents can sell commercial properties. However, it is advisable to choose a skilled agent depending on the type of property you are dealing with. If you are dealing with property for personal use, then go with a residential agent while commercial agents are best suited for commercial property. Working with an expert gives you value for money and service.