I'm sure that buying or selling commercial real estate in Edmonton is no different than buying or selling commercial real estate anywhere in Canada (or the world for that matter), a lot of money is at stake and you really need to know who you can trust.

As agents, when working with clients looking to buy or sell their commercial properties, we often have to contend with the "expert from afar". Some of our clients have people they trust whom they consult on these issues. After all, commercial real estate transactions are complicated and a lot of money is at stake, so this is totally understandable (especially in Edmonton where prices have been somewhat...up and down...lately). This phenomenon has been even more prevalent lately with the recent boom in real estate values in the Edmonton area. Many investment groups, web sties, consultants, mentors, and such have arisen. Out of nowhere has sprung an enormous stable of experts from afar, and sometimes not so far. With various business models, schemes, and the like, they all have one thing in common; they are wonderful people, true experts, and you can trust them.

Real estate agents, on the other hand, are not to be trusted. We consistently rank very low on the scale of trusted professions, along with our friends the lawyers. So, why don't we review a few things to consider before trusting an advisor.

Time in business - how long has the person been doing what they have been doing? It is an indisputable (undisputable?) truth that North America went through an unprecedented real estate boom in the last few years that will likely not be seen again in our lifetimes (in fact many areas are paying the price for the recent boom as we speak, Edmonton not so bad, but other areas have been hit really really bad). Anyone (and yes this includes real estate agents) who has made a fortune in real estate in the last few years is suspect. It could have been their genius that got them there, but it could have just as easily have been being in the right place at the right time with the right amount of money and a gamble that paid off. I can assure you that most business models that made real estate millionaires in 2006 will ruin you in 2010. Commercial real estate is a get rich slow scheme, before choosing your trusted advisor, consider whether their business model has staying power.

Repercussions - what are the repercussions upon your advisor if she gives you bad advice? In this category, real estate agents usually win hands down. Real estate agents in Alberta are considered to be in a fiduciary relationship with their clients. Your lawyer will explain that this means there are more serious repercussions if we act recklessly or fraudulently. Now, just because someone is considered to be a fiduciary, it doesn't mean he will act in your best interests, but when you find a competent person who is considered a fiduciary, it is quite likely you are working with an advisor who considers her duties to you seriously. Always ask for references and carefully check who you are actually dealing with.

Knowledge - what kind of education does your advisor have in the fields of commercial real estate and finance? Many of the experts selling their services don't have a lot of education in the field. How is this person to truly judge a good investment? (No, I'm sorry, your one-day $1000 seminar just doesn't cut it, but it is a good start, keep it up!). Some of the designations to look for in a commercial real estate agent are FRI®(Canada's highest real estate designation), and the CCIM®(possibly the world's highest commercial real estate designation, Gerald is currently in the CCIM program, working on his designation).

REALTORS® - Not every commercial real estate agent is a REALTOR®. To be a REALTOR® one must be a member of the Canadian Real Estate Association and must adhere to a strict code of ethics. Many associates mistakenly call themselves REALTORS®. Ask your agent if he is a REALTOR® and you can be sure he is required to follow the Canadian Real Estate Association's Code of Ethics.

So why do real estate agents often end up on the bottom of the trusted profession list? I don't know, but I do know that most of us commercial REALTORS® take great care to serve their clients to the best of their abilities. More often than not, when we have to deal with the "expert from afar", they end up giving the client poor advice that takes us great effort to overcome. You want a trusted advisor? Take a chance, talk to a REALTOR®. You may be pleasantly surprised.