Why Brokerage’s Evolution From Pure Transaction To Advisory Services Should Be Embraced

Real estate investment sales are following the same trajectory witnessed in stock brokerage over the past few decades, transitioning from a transactional orientation to an advisory one. Marcus & Millichap associate broker John Stewart (shown speaking) says this paradigm shift can be partly attributed to the abundance of information technology puts in owners’ hands.

The deluge of data from city sites, building websites and other sources can overwhelm even savvy, seasoned owners. They look to brokers to immerse themselves in the due diligence process to a greater extent than ever before, distilling and interpreting the most pertinent findings for them and helping them figure out their long-term plan.

“Along the way, we provide a personalized education that complements the general information they are receiving,” John tells us. In high-density markets like New York, where the options are innumerable, this is of paramount importance.

While insights gathered from these mountains of data and metrics ultimately aid decision-making, John says it’s the private or individual investor, rather than the institutional money or private equity shop, that requires the highest level of support.

John’s tailored his approach to suit the dynamic brokerage landscape, holding luncheons like the one pictured geared toward owner empowerment.

“We have clients who come to five of our investor luncheons in a row before they feel comfortable moving forward with a transaction, and we welcome and encourage that,” John says.

Although more time-intensive, this strategy’s proven highly effective for John’s clients. 1269-1271 First Ave sold for $17.75M, and, with the 1031 exchange John facilitated, nearly tripled the seller’s net income.

Similarly, 275 Bleecker St was sold for $11M after the seller attended six (consecutive) investor luncheons of John's, resulting in increased comfortability with the process and his decision to exclusively engage John to advise him through his transaction.

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