When you buy an apartment building, you need to be in-the-know. At Multifamily Real Estate Services, we provide buyer’s services for elite real estate investors across British Columbia.
You deserve a buyer’s agent who is working on your behalf, making sure you get the whole story and working to get you the best deal.
In the following guide, you’ll discover the reasons why a Buyer’s Agent is vital to your investment success. In addition, you’ll discover how our expertise contributes to your highest profit.
This guide is divided into two parts: Buyer’s Agency and Buyer’s Services. Let’s get started…
On June 15, 2018, the Real Estate Council of British Columbia introduced new legislation requiring increased disclosures to real estate buyers and sellers.
All disclosure requirements contained in the new Real Estate Council Rules are designed to ensure that you have all of the relevant information available when dealing with a real estate agent in any real estate transaction.
Unfortunately, a common thread in complaints and lawsuits related to real estate transactions, are related to a consumer feeling that he/she was “kept in the dark” about issues or problems related to their acquisition. As a result, the consumer was not able to make the best decisions possible.
By engaging a professional Buyer’s Representative, you make sure you’re not kept in the dark about pricing, problems or potential of a property.
What is Agency? And, why does it matter to you?
Agency is defined as a relationship in which one person possesses the authority to represent and act for another person in dealings with others. There are two parties in an agency relationship:
The principal: the person who grants the authority to the agent to represent and act on behalf of the principal (i.e. you, the buyer)
The agent: the person granted the authority to represent and act for the principal.
A real estate agent is defined by law as a a “fiduciary”. The law provides that fiduciaries have special duties to ensure that they do not abuse their position for their own interests or the interests of someone other than the beneficiary.
A commercial real estate agent may provide you services in one of three ways:
- In a sole agency relationship with you as a client.
- In a no agency relationship, with you as an unrepresented party.
- In a dual agency relationship with each of the two clients in a single real estate transaction.
Sole Agency Relationships
In a sole agency relationship, you receive dedicated representation as a “client” and your representative does not represent any other party to that trade in real estate.
A sole agency relationship is the most common of the three relationships because it ensure that the you are receiving the greatest level of service available in the real estate transaction. Loyalty is completely with you as a client and you have someone exclusively focused on your best interests.
In this relationship, you are owed all of the common law agency/fiduciary duties and statutory duties set out in the British Columbia Real Estate Services Act.
What to Expect as a Client Under “Sole Agency”
When you become the client of a real estate professional, they owe you special legal duties as your agent:
Loyalty: They must put your interests first, even before their own.
Avoid conflicts of interest: They must avoid any situation that would affect their duty to act in your best interests.
Fully disclose relevant information: They must give you all the facts they know that might affect your decisions.
Protect your confidentiality: They must not reveal your private information without your permission, such as:
- your reasons for buying/selling/leasing/renting
- the minimum/maximum price you are seeking
- any preferred terms and conditions you may want to include in a contract.
No Agency Relationships
In a no agency relationship, a licensee may provide you with limited trading services. The limited trading services may include
Providing you with general market information;
Providing you with standard form contracts, and other relevant documents;
Assisting you fill out standard form contracts (without providing you with advice on what terms and conditions should be included);
Communicating messages back and forth between you and the client; and
Presenting the offers and counter offers to the other party, and vice versa.
In contrast to sole agency, an unrepresented part is not owed any of the common law or statutory agency/fiduciary duties by the licensee. Therefore, the unrepresented party is putting himself or herself in a risky position when participating in a real estate transaction.
What to Expect as an Unrepresented Party Under No Agency
If you choose not to have a real estate professional represent you, you are an unrepresented party. You are not entitled to the special legal duties a client receives.
No loyalty: the real estate professionals involved in the transaction are representing clients with competing interests to yours. They must be loyal to their clients, not you.
No duty to avoid conflicts: no real estate professional is acting in your interests.
No full disclosure: the real estate professionals involved in the transaction do not have a duty to give you all relevant information.
No confidentiality: the real estate professionals involved in the transaction must share any information you tell them with their client.
A real estate professional representing someone else in the transaction cannot act in your interests. The real estate professional cannot: give you advice. negotiate on your behalf.
give you any confidential information about their client.
For example, they cannot tell you their client’s maximum/minimum price unless their client authorizes them to share this information with you.
A real estate professional must share all relevant information they know with their client.
This could include: your motivation for buying/selling/leasing/renting, your maximum/minimum price, your preferred terms and conditions.
Be cautious about sharing any confidential information with a real estate professional who represents a client with opposing interests to yours. They must share that information with their client.
Dual Agency Relationships
In a dual agency relationship, a real estate agent provides services to multiple parties in a real estate transaction where each party is represented as a “client”.
Effective June 15, 2018, dual agency in British Columbia is banned in almost all cases. It should be noted that Seth Baker, Managing Broker at Multifamily Real Estate Services Corporation has NEVER engaged in limited dual agency in his extensive real estate career.
Dual agency is not relevant to virtually all apartment building investors and will not be further discussed in this article.
In summary, Multifamily Real Estate Services acts as your agent, with legal responsibility to represent your best interest when you buy an apartment building.
Get certainty about your next multifamily acquisition. We take the mystery out of commercial real estate cap rate calculations. We provide a transparent view into apartment building financial statements. Using extensive market knowledge, we can accurately project rental income and building expenses. As a result, you know what the real numbers are and make better decisions.
As a specialized multifamily brokerage, we have insights into building maintenance and repairs. We connect you to industry professionals for commercial building roofs, envelope, hot water, waste, HVAC, windows and electrical systems. Never get surprised by capital expenditures again!
Our extensive knowledge of building inventory also allows you to compare the interior condition to other buildings in the local area.
Comparable properties and multifamily database
Are you getting the best deal possible? What makes a good deal in your market? How can you know that you’ve acquired the right building for the right price?
When you buy an apartment building with Multifamily Real Estate Services, we answer these questions…and more!
When you hire us as your dedicated Buyer’s Agent, you gain access to the largest database of multifamily properties in British Columbia. We maintain a comprehensive database with history of every multifamily property sold in the province.
Using our proprietary real estate market data, you’ll know how the market relates to your specific deal, applying valuable information to your unique situation.
Our exclusive real estate market data is presented in an easy-to-understand format. It’s interactive data that you can manipulate and re-organize to find the most meaning for you.
Receive Data on All Active and Sold Properties in Your Target Market
Easy-to-Understand Charts Comparing Your Target Building(s) to Other Properties
Which properties are on the market for the first time? Which buildings were previously listed? And, why didn’t they sell?
Who are the building tenants? What are they like to manage? What’s the building’s reputation?
Who were the owners? Did they take care of the building, or was it neglected?
What are the hidden problems that the seller and listing agent don’t want you to find out?
Multifamily Real Estate Services gets you the story behind the building, so you can be confident in your decision. We maintain a detailed history of all listings in the province. In addition, we have relationships with landlords and property managers that span the entire province.
Objective Comparison, Professional Opinion
Working with Seth Baker, Managing Broker of Multifamily Real Estate Services, you’ll receive informed opinions about each and any property you consider. Seth believes in long-term relationships and won’t compromise his integrity for the sake of a commission.
Seth has worked with apartment buildings in BC every day for nearly a decade. He has experience in every region of the province: Metro Vancouver, Fraser Valley, Okanagan, Kootenays, Northern BC and Vancouver Island. As a result of his experience, he has the ability to draw well-founded conclusions. Benefit from that experience with Seth as your Sole Agent for your next multifamily investment.
Market Trends and Rental Activity
We rely on verifiable third-party reports to monitor macro economic trends and gain local insights related to multifamily rental property.
Macro market trends that will affect your investment performance:
Dynamics of Local Supply and Demand
Impending Rental Developments (Recent, Current and Planned)
Available Rental Inventory Nearby (Complete unit counts of nearby buildings)
Rental Rates (Low, Moderate and High and Sensitivity Analysis)
Local Economic Activities that Benefit or Harm Your Investment
Municipal Planning Departments’ Reputation and Agility
Preliminary Property Research
Before you write an offer on a property, you need a solid justification for the best price possible. We make sure that you are confident when entering a negotiation.
We conduct a preliminary property research to put the most relevant and useful information into your hand BEFORE you put pen to paper. Get better information faster, and get better deals.
Professional Negotiation in Your Best Interest
As an experienced broker, you get a professional negotiator working exclusively on your behalf. When you hire Multifamily Real Estate Services, you get special legal duties as your agent:
Loyalty: we your interests first, even before our own.
Avoid conflicts of interest: we avoid any situation that would affect our duty to act in your best interests.
Fully disclose relevant information: we give you all the facts that might affect your decisions.
Protect your confidentiality: we never disclose your private information or motivations.
After your offer has been accepted, it’s now time to justify every assumption and leave no stone unturned in ensuring the accuracy of information.
Due diligence is defined as
prudently evaluating associated risks in a transaction. Duty of the investor to gather necessary information on actual or potential risks involved in an investment. Duty of each party to confirm each other’s expectations and understandings, and to independently verify the abilities of the other to fulfill the conditions and requirements of the agreement.
We provide access to verifiable third-party reports covering all aspects of due diligence. Due diligence may include the following:
Analysis of Financial Statements
Rental Rate Comparison
Zoning, Land Use & OCP (or NCP)
Highest and Best Use
Current rents vs Potential Rents
Financial Modelling for Building Improvements and/or Value-Add
Financial Modelling for Development Potential
“As-If Built” or “As-If Renovated” Market Valuations
Qualified Commercial Building Inspectors
Lenders and Commercial Mortgage Brokers
Title and Survey
When you work with Multifamily Real Estate Services, you can be confident that you’re making a safe and profitable apartment building acquisition.
Multifamily Real Estate Services Corporation connects you with reputable property management companies in your market area.
Multifamily Real Estate Services is a licensed property manager, so we know what it takes to be successful. In order to maintain our focus, we do not provide property management services. Knowing which property management companies are good or bad can save you countless problems during ownership.
Less Commission, More Client Profit
As a niche brokerage providing 100% focus in multifamily real estate, we aim to be cost leaders. Less commission fees means more money in your pocket.
Virtually every major commercial brokerage charges their real estate agents between 30-50% of commission fees. And, many firms place multiple agents on each transaction, meaning agents are paid even less, further diluting commissions and driving up prices.
At Multifamily Real Estate Services, we have no splits. Seth Baker is your sole agent, dedicated to providing more value for less commission.
We are the cost leader in multifamily brokerage services, dedicated to maximizing client profits.
Buy an Apartment Building with Multifamily Real Estate Services
When you buy an apartment building, engage Multifamily Real Estate Services for dedicated representation, elite service, superior market information, qualified expertise, all at the lowest possible fee.