When it comes to listing a commercial or retail property, the comparable market analysis that you give to the client is critical to the conditioning process. Many clients initially expect far too much money for their property based on false information and assumptions.
In raising this issue it should also be said that some agents will deliberately overstate the value or rental for a property for the simple opportunity of getting the listing. After that point in time they will start conditioning the client to the prevailing market conditions. That of course is not the professional way to do business. It also sends the wrong message to the client and puts them under tremendous pressure when it comes to the final negotiation and transaction.
The fact of the matter is that you should fully brief the clients that you work with. You should give them accurate and up to date market analysis information. Here are some facts relating to that strategy and process.
- The information that you provide is time sensitive. The market today will be a lot different than what it was six months ago. Nothing ever goes up forever. The client needs to understand that commercial real estate is quite seasonal, and the enquiry rates change throughout the year.
- Local properties will have a direct impact on each other when it comes to property marketing and property enquiry. The properties that are still unsold on the market are not a good indicator of the final price. In most cases, those properties will be overstated or poorly marketed. Either way the information relating to those properties needs to be sanitized to something that is compatible to your property listing.
- Enquiry rates will change throughout the year. Property enquiry is usually shaped from the prevailing business community, and the economic circumstances of the market. Track the enquiry and understand what people are looking for today.
- It is quite likely that the time between property inspection and property offer will be lengthy. In many circumstances, the extraction of an offer from the potential buyer will take a lot of time and effort. They will be looking at many other properties and considering the business pressures that apply to borrowing money in today’s market. For this very reason, your client needs to be flexible and patient.
- Today’s market conditions will be influenced by the local area, the property improvements, and the supply and demand when it comes to particular property types. Tracking all of those numbers can be a challenge, however it does have to occur if you are going to give accurate and up to date market analysis.
Know your market and provide the best information to your clients. A well listed property will create more enquiries and sell faster in any market.