The buyer representation proposal is
rapidly becoming an essential part of buyer
agency documentation involving commercial
properties. Exact formats will differ among
brokerages but the scope of such proposals
can be generally grouped under five
categories. The following guideline contains
summary points only.
Objectives and Scope of Work
What goals must be achieved and what
tasks are required?
This segment details goals concerning
the search for qualified property.
Customarily, this section includes a
timetable leading to point of anticipated
sale, along with a general description of
sequential tasks involved.
Search Criteria
What location, features, and economic
objectives must be addressed?
This stage is
similar to a technical review found in the
marketing proposal for a seller. The search
criteria sets out requirements for an
acceptable property:
Location
Site
Building
Economic/Financial
Search/Analysis Process
What properties are best suited to the
client?
Review all listed properties based on
search criteria, including solicitation of
leasing proposals (e.g., office space), or
design build proposals (e.g., an industrial
site), and also analysis of properties not
currently listed for sale. Summarize all
relevant properties on a comparative basis
to determine best options for client
including valuation of those options. This
section can involve extensive analysis using
accepted methods of investment analysis and
valuation, e.g., cash on cash, direct
capitalization, yield capitalization
(discounted cash flows), present values, and
internal rates of return.
Negotiations and Drafting the
Agreement
How will negotiations be conducted and
offers drafted?
For proposal
purposes, practitioners normally detail the
types of services commonly provided to
clients during negotiations and drafting
agreements.
Closing the Transaction
What follow-up processes and after sale
services are provided?
Commercial brokerages have moved toward,
and placed emphasis on, providing services
after the signing of an agreement to the
point of, and well beyond, closing. The sale
or lease of a particular property opens
other opportunities upon which resourceful
companies have capitalized. The concluding
segment of the proposal details after sale
resources along with a detailed resume of
both salesperson and brokerage.
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