Should You Use a Residential Agent to Buy an Eatery?

04.30.21 | Buying
hospitality real estate

Let’s say you recently bought a home. The process was smooth, and the property is a dream. You were more than happy with the agent you worked with—but does that mean you should work with them again when you’re buying an eatery?

While a skilled buyer’s agent is worth their weight in gold when you’re looking for a place to live, the complexities of purchasing a business require a specialist. In this post, we’ll look at the differences between residential and restaurant real estate professionals—and what it means for you…

How restaurant real estate is different

Buying a restaurant business is unlike purchasing a home in many ways. The search process is different—and so is the due diligence. It’s not just a property and its many components and systems that need to pass muster. Every element of a business (from its profitability to the condition of its assets) needs to be reviewed carefully.

There are also almost always longer timelines involved when it comes to buying a restaurant. Purchasing a home can mean competing with multiple buyers—and acting fast to secure your dream property. When you’re purchasing a restaurant business, you’re probably looking at a process that will last months (not weeks).

Lastly, there are often more parties involved in the purchase of an eatery—and the back and forth between them tends to be pretty involved. In addition to lawyers and real estate representatives, there will typically be accountants, a landlord, contractors, subcontractors…the list goes on. There may be even more professionals participating in the purchase or sale of a franchise!

What a restaurant-focused agent brings to the table

Needless to say, there are some major differences between residential and commercial real estate. Working with a professional who has the right expertise can help you find a business that matches your needs, ensure that your due diligence is done, and protect your best interests at every step.

Put simply, a qualified business broker will know what to look for—and look out for. Their varied expertise will allow them to explain every aspect of your purchase and refer you to an outside expert when need be. Once your offer is accepted, they’ll likely work for you for at least two months to broker the deal. That’s a much longer timeline than what’s typical for a home.

Working with a business broker also means that dealing with other professionals will almost certainly go smoothly. There are a lot of gatekeepers—from accountants to landlords. A professional who’s been through the process many times before will know how to obtain their approval. In particular, lawyers play a very active role in this type of transaction, so strong ongoing communication is key.

Another thing to consider is the qualified network that a business broker has access to. From reliable and affordable contractors to lawyers who get things done, they’ll connect you to local pros who can lend you their expertise for a streamlined sale.

Taking your next step

Given the differences between buying residential and commercial real estate, it’s not surprising that the commission structure isn’t quite the same. That said, as the buyer, you won’t have to worry about paying these fees.

Deciding who to work with when you’re purchasing a restaurant can be complicated, but it doesn’t have to be. By choosing a business broker who understands the ins and outs of the process, you can help ensure a stress-free—and successful—result.

READY TO FIND THE RIGHT RESTAURANT BUSINESS? REACH OUT TO LEARN HOW I CAN HELP SIMPLIFY THE PROCESS FOR A GREAT OUTCOME!