In this large and vibrant U.S. economy spanning a huge area of land, we can find many types of real estate transactions: land, commercial centers, industrial parks, office buildings, single and multi-family residential, mixed-use buildings, parking lots/garages and MANY others. In my career of over 20 years, I have seen many colors and shapes of real estate transactions and I am constantly surprised by the uniqueness of every client and requirement I see on a weekly and daily basis. Just when I thought I could not be surprised, another curve ball appears! It truly is entertainment of a unique theater.

Today’s internet world has opened up a whole new ocean of information to the public and anyone having access to the internet. Speed and ease of information makes it look as easy as buying a car! Would you go into a court room without an attorney or at least a legal consultation? How about building a house or commercial building without an architect or engineer? Would you change your car’s oil or brakes without any mechanical experience or knowledge? All of these basic questions are the tip of the iceberg. Many layers of compound problems and issues can and surely WILL arise if basic attention is not reviewed by a professional in that field.

Many view the cost savings of self-representation as a benefit- but is it? Average commissions on a sale or lease of real estate is well beneath 7% of the overall cost of the transaction, and paid for by the proceeds of a sale of by a seller, at buyer’s cost- nonetheless it does inflate the overall price, but a small expense in light of the peace of mind and benefit one gains by retaining such assistance. In the example of an attorney referenced above, it is almost like having a paid-for attorney rather than cutting a check for an expensive legal fee invoice later. By no means is a real estate professional an attorney, however, their experience can help navigate through unknown areas one has not been before. Almost like a taxi or Uber driver in a city you have never visited before.

Depending on the state, real estate sales persons and brokers are required to maintain active status of their license by performing Continuing Education courses regularly- failure to do so can result in suspension or deactivation. This is a great protection for the public to assure sharpness of the licensee status. In California, these courses vary based upon the licensee’s status- a broker’s continuing education is much more detailed and legal then a sale person (agent) level of information.

Every state in the United States has their independent Department of Real Estate or similar governing body which oversees regulations and requirements within their jurisdiction- making business across state lines tricky. California licensees are now required to prominently display their license ID number and brokerage association on all forms of advertising- making it a safeguard for the public and also reinforcing requirements licensees are legally obligated to maintain.

In closing, one may feel the above is a biased point of view from a professional within that field- but I assure you- the complexity of the documentation is deep. Every scenario grows into a light mist, then a rain, and most always into a hurricane of complexity. A hurricane that is unique to each and everyone’s world- title insurance and real estate taxation add additional layers of amazement and exposure as well. Ask your friends and loved ones who have bought or leased real estate- and I bet they will endorse the recommendation of a real estate consultant specialized in the region of business. Our doors are always open for questions or guidance!

Article written by:
John Orlando
Principal
Tel (760) 929-9700
jorlando@lee-associates.com

Lee & Associates Commercial Real Estate Services
1900 Wright Place, Suite 200
Carlsbad, California 92008