#2 - Coming Soon
To actively represent you, and market and promote your property or business to the public, the Arizona Department of Real Estate says we have to be contracted. You have to authorize us to represent you. Some reading this may hve experience with agents who have accepted an open listing, aka a "pocket listing", as a way for you to access potential buyers. There are typically verbal agreements between a broker and seller, although open written agreements are available, where the seller tells the agent that if he/she brings them a buyer, the seller will pay them a commission. Because of the lack of security in the agreement, the broker, or agent, does little if any market research, analysis or preparation of marketing materials, and because of lack of confidence in the broker/agent, the seller puts little if any effort into providng the broker with any business or real estate information. As you might expect, these arrangements are largely unproductive. Sometimes the seller will think that he's getting better market exposure with pocket, or open, listings by engaging several brokers on this basis, but in fact just the opposite is usually true. When an agent learns that he/she isn't the only agent with this arrangement, he/she spends even less time on that seller's behalf. Because of the lack of formality of this arrangement (especially if unwritten), these are typically entered into with a term (expiration period) undefined, and oftentimes without a price agreed to.
There is also a type of listing agreement called exclusive agency. This arrangement grants an exclusive listing agreement to a single broker, but allows the seller to also sell the business or property himself and not be obligated to pay the broker a commission. Of course if the broker secures the buyer, the seller agrees to pay a commission to the broker. These are written agreements with pricing stipulated, a commission rate or fee agreed to, and an expiration date among the terms and conditions. The seller often prefers this arrangement when they have been trying to sell the station themselves for a period of time, and believes they still have interested parties as prospective buyers. Brokers have better security in the agreement that with a pocket listing, but are still at risk for not being compensated for their efforts if in fact the seller is successful selling their station themslves. This bit of risk tends to still inhibit the broker's efforts in marketing. This type of listing is typically accepted by brokers that don't have a lot to add to the value of the sale, or perhaps have a little extra time on their hands - either of these conditions has become more common over the past few years with the decline in the real estate and business brokerage industries.
The most common listing agreement and the one first offered by brokers is an exclusive listing. With this arrangement the broker is compensated unconditionally, regardless of where or how the buyer is procured. These are formal written agreements specifying at least a pricing construct, a commission or fee schedule, and an expriation date. Other terms and conditions apply depending on whether the listing is for the business, the real estate, or both, or either. The structure of the listing agreement should fit with what is being sold - as obvious as that may seem, it doen'st always come out that way. Brokers in Arizona offer listing agreements as short as one page, and as long as a dozen pages of small print. Notably, public domain websites for listings require that a broker listing on their site have exclusive listings only. This is to mitigate the potential for involving the website in litigation which frequently accompanies exclusive agency and pocket listing agreements.
Any of the above agreements may have up-front fees to the broker under terms like marketing fees, listing fee, or retainer. The terms may allow for the advanced fee to be credited back to the seller at close of escrow if the sale is successful - if not, it's considered a sunk cost to the seller.
A brief note (DISCLOSURE) about commissions: In Arizona, all commissions are freely negotiated between the seller and the broker. Neither the Department of Real Estate nor any other governmental agency, regulatory authority, or trade group sets commissions.
Why is NOW the best time to sell your station?
The timing for buying and selling investments has always been a serendipity exercise, one wrought with surprises. Along the way of forming, owning and operating MJG, Mike was a stockbroker. As most people now know, investing in public markets is like living in a gold fish bowl, and that was before the internet; now it's even more transparent, and information more immediately available to all. Does the proliferation of immediate information mean that market timing can be more calculated, more certain with less risk? Many have tried over the years to find the formula to timing market movements, and theories now supported by computer models abound. After years, decades, even lifetimes of pursuit many have concluded that trying to predict the motivations, emotions, and investment actions of others is simply not in our DNA.
And the market for private businesses and commercial real estate is less transparent that the public markets. It's the lack of transparency in these markets that raises the specter of the unknown, of loss, to both buyers and sellers, and brings on the anxiety that lives in the pit of your stomach. Influencing factors such as the health of credit markets, Federal Reserve activity & policies, the position and nature of the economic cycle, and trends of commercial real estate to name a few, affect the aspects of a private business or commercial real estate capital transaction. Note that these factors are beyond our control. These and other factors can be known historically, and to a degree considered within the context of future expectations. They contribute to strategizing for a transaction, accommodated during negotiations, and structured into the purchase-sale agreement. In today's economic, socio-political, and market environment each transaction is hand-crafted. The days of cookie-cutter deals based on rule-of-thumb pricing and historical participant behavior are gone. To be a successful seller today takes work ... skill and experience help, but it still takes work.
So when is the right time for you to sell your station? When it's right for you! This is a personal decision driven by factors affecting you, that can be controlled or influenced by you. You, or we, can't control the external factors noted above. But of all the things you can't control, you can control your own market timing. Talk with us. We'll give you our best assessment of the market, how to approach it (strategy), what to expect (pluses and minuses), and assist you in structuring a transaction for your optimal benefit (not just price - terms and conditions count).
#1 - Character-based Representation
Honesty: To you, and everyone we contact on your behalf.
Integrity: We do what we say we'll do, and when we say we'll do it.
Confidentiality: What's between us stays between us.
Work Ethic: We come to work everyday.
Responsiveness: By company policy, we return calls within 6 business hours.
Uncompromised Representation: We keep your interests first.
With that in mind, why would you hire a generalist to sell you gas station property or business? By working with MJG, you are choosing to work with representatives who deal exclusively in your line of business. You will not get the experience and expertise that MJG provides with a generalist business intermediary or real estate broker or agent. Would you hire a roofer to pave your driveway? Probably not. So why hire an agent who sells restaurants, flower shops, cell phone stores, houses, and leases offices and industrial property to sell your gas station? Before you sign up with that guy or gal who did such a good job selling your house,
give us a call- you might be surprised at the difference a Specialist makes.