What's the Difference Between a Commercial Real Estate Agent and a Residential Real Estate Agent?
Commercial vs Residential Real Estate Agents
The simple difference between commercial real estate agents and residential real estate agents is in what kind of properties they work with. However, each group has some specific responsibilities that come with the job.
What does a residential real estate agent do?
A residential real estate agent works with residential properties. Residential properties are private homes, condos, duplexes, townhouses- anything made for residential living. Agents work on behalf of their clients doing a range of things, from hosting open houses and showings, responding to client and potential buyer questions, staging homes, arranging residential inspections, completing paperwork, and doing research on local listings and staying on top of trends and industry news.
Unlike a commercial agent, a residential real estate agent’s success is more based on the fluctuating housing market, and there may be tough patches where an agent doesn’t get much work. However, residential properties are easier to sell and in more demand than commercial properties. Particularly early in their careers, real estate agents often work for a real estate broker and/or real estate office. While real estate agents are qualified through state training to help people buy, sell, or lease all sorts of residential properties, there are various adjacent titles and jobs that have their own particular responsibilities and limitations, including realtors, listing agents, buyer’s agent, and rental agent.
What is the role of a commercial real estate agent?
Teo Spengler writes for the San Francisco Chronicle:
“Commercial real estate [agents] works with people interested in buying, selling, renting or leasing office complexes, warehouses, multi-unit buildings, retail “flex” spaces, facilities containing storage units or parking, mobile home developments, raw land zoned for commerce and other similar transactions. Commercial transactions tend to be more time-consuming and complex than buying and selling homes, and commercial agents often represent both the buyer and seller. Commercial agents usually work on commission and often get involved in day-to-day property management.”
Commercial properties take longer to buy/sell, and there are fewer commercial properties than residential, so a commercial real estate agent is not facilitating as many transactions as a residential agent. However, they often make a higher commission percentages and properties are more expensive than residential. Commercial agents usually work a more 9-5 schedule, while residential agents can be more flexible and work all times of the week, and may have other jobs. Because commercial properties are more complex and regulated than residential properties, commercial real estate agents have special additional training and expertise.
Which type of agent do I need?
If you are looking to sell your house or buy one, use a real estate agent. If you are representing a company or business that needs commercial real estate to buy, rent, or lease, you will use a commercial real estate agent that knows how to navigate finding commercial real estate that suits your needs. Now it’s just a matter of finding an agent who is reputable and experienced.
As you build your team of experienced professionals to help you with your commercial real estate property, do you have a commercial property inspector you can trust to conduct the commercial property inspection process? Consider Focus Building Inspections, a CCPIA-certified company headquartered in Tulsa, Oklahoma.