Techniques that Buyers and Sellers Use Insight from the Top Commercial Broker in New York.

Why should commercial real estate brokers represent only one party? Is buying prime real estate at a top price a great strategy? What are some techniques that buyers and sellers have used when purchasing a property? Top commercial broker in New York, Robert Knakal, Head of New York Private Capital Group for JLL, shares his insights.

Read this entire interview here: https://shorturl.at/stvIN

Part of your business is focused on representing one party only, can you share a little bit about that and the reasoning?
Most brokers represent both sides, I’ve always focused my entire career on seller representation. On 2,250 of the 2,252 transactions I’ve been the exclusive agent for the seller, I had two fluky deals over the years where I represented buyers, but that’s not normal. As a broker, working with control is important. Many sellers are optimistic about the value of their property, and when the value gets down to the point where it is truly market, there are a few buyers that would buy at that price. And if you’re a buyer rep representing one of those buyers, even if you have a buyer who’s willing to pay the right price, you still only have a 25% or 33% chance of making a commission. I always wanted to work on the seller side for a couple of reasons: 1) We like to avoid conflicts of interest

What are some techniques that buyers have used when purchasing a property after going in contract? What is the best way to approach it?
I’ve seen a lot on all those transactions I’ve done, but I haven’t seen it all. It seems like in every deal there was a new thing that comes up that I wasn’t prepared for. From a buyer’s perspective, buyers try to get contingencies to their transactions to the extent they can. That’s rare in New York, we very rarely have any post-contract execution or due diligence. And by not having that post-execution due diligence, the contract deposit is hard when it goes up. There are times when people will make claims of breaches if they don’t want to close, that’s generally difficult to prove. But the most common area that creates an issue for a buyer is environmental. And there are several environmental issues we have here, we have lead paint, we have asbestos, we have potential oil leaks, and a number of buildings are still using heating oil. Some of those tanks are very old.

Robert Knakal
@BobKnakal
[email protected]


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