I’m biased here. Obviously. I buy directly from owners and I think it’s the best option for most sellers. But I also think it’s worth being honest about when a broker might make more sense. Because it’s not always black and white.
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What’s Your Timeline Priority?: Need to close in 45 days? Direct buyer. Can wait 120+ days? Broker route opens options. -
What’s Your Price Priority?: If property is in hot market (flex, good location), broker competition might generate $100K+ premium. If property is less sexy, direct offer might be best you get. -
Commission Impact at Different Price Points: Small deal ($800K): 5% = $40K. Direct buyer $50K cheaper is huge. Large deal ($4M): 5% = $200K. Broker premium from competition might exceed that. -
Tenant Stability: Tenants prefer direct buyers (minimal disruption). If tenant questions/problems arise during broker marketing, it affects deal. -
Contingency Tolerance: Direct buyers are flexible on timing, environmental, inspections. Brokers typically bring buyers with full due diligence contingencies.
The case for selling direct
Speed. I can close in 30-45 days. A brokered deal typically takes 4-6 months from listing to close. Sometimes longer. If you need certainty and speed, direct wins.
When direct buyer makes sense
- You need to close within 60 days
- Property is less marketable (older, smaller, secondary location)
- You want zero commission cost
- You prefer minimal tenant disruption from marketing
- You prefer one buyer, certainty over competition
When broker makes sense
- Property is in strong market (prime location, good tenants)
- Competitive bidding could push price higher than direct offer
- You have time for 4-6 month marketing and close process
- Property benefits from institutional buyer exposure
- You want professional marketing and buyer sourcing
No commission. A commercial broker charges 4-6% of the sale price. On a $2M building, that’s $80K-120K that comes out of your pocket. When you sell to me, there’s no broker on either side. That’s real money you keep.
Confidentiality. When you list a building, it goes on LoopNet, CoStar, maybe gets marketed to a bunch of people. Your tenants find out. Your competitors find out. Sometimes your tenants start looking for other space because they’re worried about new ownership. I’ve seen this tank deals. When you sell to me, nobody knows until the deal is done.
Simplicity. One buyer, one offer, one closing. No showing the building to fifteen tire-kickers who are just gathering market data. No best-and-final rounds. No buyers who get under contract and then disappear during due diligence.
The case for using a broker
If your property is a trophy asset in a major market and you want to maximize absolute price, a broker might get you there. Institutional-quality assets (think $10M+ single-tenant buildings with credit tenants on long-term leases) benefit from a marketed process because you’re selling to a buyer pool that pays the lowest cap rates. Those buyers don’t call me. They work through brokers.
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If your building is unique or hard to value, a broker’s marketing might find the right buyer who sees something special that a direct buyer wouldn’t pay up for. An owner-user who wants your specific location, for example.
Where the lines blur
Most of the buildings I buy in Wilmington, Myrtle Beach, and across the Carolinas fall in a middle zone. They’re too small for institutional buyers but too valuable to just sell on a handshake. This is where selling direct makes the most sense. The broker’s 5% commission eats a big chunk of the proceeds, the marketing period adds time and stress, and at the end of the day the buyer is someone like me anyway.
I’ve bought a building that was previously listed with a broker for almost a year without selling. The listing expired, the owner called me, and we closed in 30 days. The final price? Usually within 5% of what the broker had it listed for. Except the owner didn’t pay the commission. So net to the seller was actually better through the direct route.
Seller takeaway
If you’re deciding between selling direct or through a broker, call Roth Capital at 704-600-3839. Jim Kittridge will give you a direct offer and help you understand whether going direct makes sense for your property or if broker competition might serve you better.
Want to compare? Call me and I’ll give you a number. Then talk to a broker and see what they think they can get. You’ll at least have a benchmark. 704-600-3839.
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