ProTech’s Comprehensive 10-Step CRE Transaction Process

ProTech Commercial Realty’s Comprehensive 10-Step Guide to the Commercial Real Estate (CRE) Transaction Process

Each commercial real estate (CRE) transaction is unique, but a well-structured workflow can streamline the process for both buyers and sellers. ProTech Commercial Realty’s 10-step CRE transaction process ensures a smooth and successful experience. This guide provides an in-depth look at the steps involved for both buyers and sellers, offering valuable insights into what you can expect during a CRE transaction.

Step 1: Interview and Select a Broker/Agent

The first step in any successful CRE transaction is finding the right broker/agent. Buyers and sellers interview brokers to evaluate their expertise, market knowledge, negotiation skills, and track record. Sellers may request a Broker Opinion of Value (BOV) during this stage to understand their property’s market potential. Selecting a qualified broker ensures alignment in goals, expectations, and listing price.

Step 2: Goals Discussion and Expectations Setting

For Sellers:

• A BOV is prepared (if not already completed in Step 1) to establish an optimal listing price.
• Expectations are set, including market conditions, competing properties, and potential timelines.
• Both parties agree on a strategy before proceeding.

For Buyers:

• The broker gathers information on property type, budget, location, and timeframe.
• Market conditions, availability, and expected timelines are discussed to set realistic expectations.

Step 3: Sign Representation Agreement

Formal agreements are signed to protect the broker’s time and efforts.

• Sellers: Typically sign an exclusive listing agreement or commission agreement.
• Buyers: Sign an exclusive buyer representation agreement to avoid commission disputes.

Step 4: Property Marketing and Identification

For Sellers:
The broker markets the property using tailored strategies to attract qualified buyers, answers inquiries, and ensures prospective buyers are vetted.

For Buyers:
The broker identifies properties that match the buyer’s criteria, presents options, and refines the search based on feedback.

Step 5: Property Tours and Viewings Scheduled

For Sellers:
Qualified buyers tour the property, with the broker present to answer questions and facilitate the process.

For Buyers:
The broker schedules and accompanies buyers to property tours, ensuring all relevant details are addressed.

Step 6: Offers Received or Submitted

For Sellers:
Offers are presented and analyzed with guidance from the broker, who provides recommendations on whether to accept, counter, or reject offers.

For Buyers:
The broker drafts and submits offers, providing advice on terms and potential outcomes.

Step 7: Negotiations

Negotiation skills are critical for achieving the best terms.

• Sellers: The broker works to maximize the sale price and secure favorable terms.
• Buyers: The broker negotiates to ensure the best value and conditions for the purchase.

Step 8: Contract Execution and Key Dates

Once the contract is signed:

• Due diligence, financing, and contingencies are addressed.
• The broker tracks key deadlines such as escrow deposits, inspections, and closing dates to ensure compliance.

Step 9: Pre-Closing Responsibilities

For Sellers:

• Coordinate inspections, appraisals, and property access.
• Address title issues and prepare closing documents.

For Buyers:

• Schedule inspections, surveys, and appraisals.
• Monitor the financing process and resolve any issues.

Step 10: Closing

Both brokers review the settlement statement with their clients to ensure all details are correct. Once all questions are resolved, the title company schedules the closing, and the transaction is finalized.

Why Choose ProTech Commercial Realty?
At ProTech Commercial Realty, we are committed to delivering a seamless CRE transaction process. Whether you’re buying or selling, our proven 10-step approach ensures transparency, efficiency, and success. Let us help you achieve your commercial real estate goals today!

Optimize your CRE transaction with ProTech Commercial Realty. Contact us to get started!