Success in selling your healthcare real estate (HRE) property is defined as receiving the best terms and highest market price for the property with a smooth and easy transaction process. In order to achieve this in the current economic environment, it is essential to use an experienced healthcare real estate broker.
Using a broker who specializes in HRE assets is similar to going to a lawyer for legal issues: you could deal with it on your own, but having professional guidance and advice will only increase your chances of success. Like a good lawyer, good medical property brokers have the expertise and experience to get you the best possible outcome to accomplish your goals. Just like lawyers though, not all brokers are equal and some can actually hurt the transaction process. This is why it is extremely important to choose your broker wisely, as there are certain desirable and undesirable qualities that will determine the value you receive from their services.
What a Good HRE Broker Will Accomplish
A good broker will do 3 main things for you: first, they will help you evaluate the market and assess the value of your asset properly. HRE specialist brokers have the experience and digital tools to accurately evaluate your asset(s) to determine the highest price the current market will bear. The biggest pitfall for sellers is to either overprice or undervalue their asset. In both cases the outcome is poor for the seller. Your only insurance against this is to hire a good broker who will understand all of the economic factors, the market for your property and see the factors inherent in your asset that will attract the highest price from the most appropriate buyer.
Secondly, a good broker will market your property with the maximum amount of exposure to qualified buyers. You don’t want a broker that relies on a couple of former buyers or gets you to sign a contract with just anyone off the street. By creating an competitive environment with qualified buyers, a good broker can ensure that you are getting the best price and terms for your property.
Lastly, a good broker will work with you until the money is in your bank account. There many complex details in a transaction and numerous potential pitfalls for sellers. A quality broker will advise you throughout the process, make sure you aren’t being taken advantage of, and ensure that you get your property sold for the best possible price.
Characteristics of Good Brokers
A checklist of key characteristics to look for in a broker:
1. They offer a national platform.
Being in multiple markets and relationships across the nation means they have lots of connections to qualified buyers. They will have access to both national and local buyers to provide you the best opportunity for selling your asset. Also, being in multiple markets helps ensure that you are working with an experienced broker who will understand the macro-economic factors that affect your property’s value.
2. They have a comprehensive / institutional marketing campaign.
Is it organized and systematic? Do you like the way their offering memorandum is put together? Make sure to look at a deal that is the same size as yours. Some brokers put together really beautiful packages, but only for deals over a certain size. It is also very important that they are personally calling buyers, as well as releasing it online for people to review. This is an indicator to how well they will handle your potential buyers during the transaction, in addition to the ability to attract buyers.
3. Keeping Consistent Contact.
Ask how they will provide you updates during the sales process. Who will handle the scheduling of site visits and how will that be communicated to you? You need to make sure that they don’t get the listing agreement and then you never hear from them again. A good broker will keep you up to date throughout the entire process.
4. They have experience managing HRE transactions
While handling other asset classes can be valuable experience, it differs from the healthcare real estate industry. There are standards in the HRE industry that are not standard anywhere else, and only brokers with experience in the sector will know this. Thus, good brokers are those who have experienced the transaction process from start to finish as they know the buyers and the process inside and out.
Following this guide is a great start to finding a high quality experienced broker to sell your property. Make sure you pick up the phone and find a qualified HRE broker.
You need to develop a trusting relationship where you are certain that they are not only looking out for your best interests, but are capable of getting you the best terms possible. Engaging the right broker is the first step on the right track for selling success.