This is a repeat of post that I was asked about many times, so here it is:
Going Rogue: The Bad
Let’s break it down in plain English. If you really want to know when it’s okay for a commercial realtor to go rogue, the answer to that question is: never. The reasons why are simplistic and straightforward if you take a moment to about it. In the commission of the everyday duties of the commercial real estate broker, there simply isn’t any room for lone wolf tactics. Most of the time as a broker, you’ll be reliant on fostering working relationships between parties to advance your aims and speed real estate deals along to their rapid conclusion. If you want a perfect example of why rogue behavior doesn’t work in these cases, think about property owners interested in leveraging commercial assets by leasing a building, or lessees who want to take advantage of extra space by bringing in subtenants. If a realtor doesn’t adopt a “team player” approach when trying to work out one of these deals, nothing will ever get accomplished.
Going Rogue: The Good
On the other hand, there are some instances when roguish or “lone ranger” approaches to conducting business are perfectly acceptable, even welcomed like a breath of fresh air—but there’s a catch. It’s only okay when it’s a concerted effort made by an entire brokerage firm, acting in unison to break new ground. Most of the time you’ll hear people slap labels like “forward thinking” or “innovative” on these types of firms. But regardless of what you label them, there’s little doubt that a commercial real estate brokerage taking bold steps at improving the performance of its agents by offering only performance-based commissions, and redefining the relationships between realtors and clients, is a good thing.
Rogue vs. Non-Rogue
If you’re confused, you shouldn’t be. Simply put, a rogue mentality works only on an conceptual level. When dealing with individuals in the real world, though—just as you would when serving a client leveraging commercial assets—the only acceptable action is to throw a lasso around the shoulders of that inner cowboy and hogtie him to the ground. If you don’t have a lasso and you’ve got lousy aim, try these more mundane approaches.
- Focus on teamwork. If that requires you to work with another broker outside of your geographical area, so be it. However, do not forget that civil engineering firms, law firms and market research firms can often help. We have used civil engineering firms in other markets to help identify active developers and uncover due diligence. Also, we have paid brokers in other markets for market data on an hourly basis instead of bringing them in as a part of the team. They like it because they get paid no matter what the outcome of the deal.
- Focus on the long term goal of the client and what it’ll take to make them happy. If the broker is compensated on client satisfaction, instead of “just getting the deal done, this is not a problem”.
- Forget your own best interests. Or better yet, make sure that your best interests ARE the client’s best interests by establishing Key Performance Indicators that are measured by the team at the end of the deal. Now the broker and the client knows up front what is “success” and how it will be measured.
- Strive for a multi-sided win-win situation. The days of smash-mouth broker negotiations are a thing of the past – the community of brokers look for great people to work with.
- Point your thoughts and concerns away from your commission and realize that long term satisfaction in this business means knowing what part of the deal you strive to be an expert in, then get a great team around you.
- Put your verbal communication skills to work by engaging all parties in a personable manner. Pause before making that call and prepare for the conversation you are about to have. How do you view it going? What obstacle has to be overcome? How can that obstacle present a solution? Now – what is the simple message that you need to get across? Do you have any concrete or credible third parties that will support your proposal?
- Don’t resist pursuing certain options because they promise to be time consuming Develop a disciplined manner of working that emphasizes patience and diligence. (credit to Cardinal Real Estate Partners)