Companion to: Real Estate Decoded Chapter 42 (Investment-Sales Brokerage) - Workbook tab (Brokerage Decoded - separate guide)
Inputs
Outputs
In-place valuation (at submarket cap)
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Stabilized valuation
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Stabilization value-creation
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Recommended asking price
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Estimated buyer-pool size
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Estimated time-to-close
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Recommended pitch summary
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How to read this tool: The investment-sales broker who wins the listing brings: documented submarket cap-rate comp set, an in-place vs. stabilized valuation walk, a recommended go-to-market strategy with buyer-pool sizing, and a credible time-to-close. This tool gives you the framework. The broker craft is the territory canvassing that produces the recommendations.
What this tool is for
Investment-sales brokerage is dominated by the territory-canvassing discipline. The great broker (Robert Knakal class) knows every building in the assigned area, knows the owner, knows the cost basis, knows the family situation. The pitch pack is the artifact of that knowledge - a credible, documented case for the owner that the broker can produce the right buyer pool at the right price.
Benchmarks the practitioner watches
- Broad-marketed process: 60-150+ buyers, 90-120 days to close, 5-8% marketing premium
- Targeted process: 15-25 institutional buyers, 60-90 days, 2-4% premium
- Off-market: 5-8 strategic buyers, 45-75 days, at fair value
- Listing commission: 1.0-2.5% of sale price (lower for institutional, higher for sub-institutional)
- Best-and-final round: typical at day 30-45 of broad-marketed process
Common mistakes
- Pricing on in-place NOI when the value-creation thesis is stabilized NOI
- Recommending broad-marketed when off-market preserves seller confidentiality (estate, family situation)
- Underestimating the time-cost of broad-marketed (4 months vs. 1.5 months matters in changing rate environments)
- Pitching aggressive ask without the cap-rate comp set to defend it
Educational reference only. Not investment, tax, legal, or real-estate advice. Confirm market-specific cap rates, lender terms, and tax overlay with your own advisors before acting.