Many people think that the life of a commercial real estate broker is easy. Perhaps some people even join the industry assuming that is the case. The reality of the industry is far and away from those assumptions. The top agents in the market work really hard and do so to a definite plan or system.
When you put in the effort individually, you will get results. The efforts applied should be specific to the property type and the location; in other words you do need to do the right things each and every day and systemise the process. That is exactly what the top agents do.
Here are some cold hard facts regards the industry:
- Commissions – looked at in isolation, the commissions that we earn can be quite large. For most property transactions and listings however real strategy and effort is required to attract a successful outcome in any sale or lease. As large as the commissions may seem, they don’t come easily. If you want significant income, you need to work hard.
- Hours of work – the hours of work are variable and sometimes quite long. It is not unusual to be negotiating a contract or a lease later into the evening, across the weekend, or early one morning. The business is out there to be done providing you are flexible enough to do the work of any time of day.
- Property knowledge – property knowledge will have a big impact on your inspections and negotiations. It will also help you significantly when it comes to the listing process. On that basis you will really need to know a lot about the local area, the property type, and the current levels of enquiry.
- Personal marketing – whilst you may work for a well-known brokerage or agency, you must market yourself each and every day to the right people in the right way. On that basis every agent or broker should have a specific prospecting and networking program underway.
- Prospecting – it should be said quite clearly that prospecting is not easy. It is required business skill that takes practice and improvement. Simply lifting the telephone or door knocking on the business will not be very successful without the necessary practice factors. Build some prospecting practice into your business day prior to getting into the office.
- Negotiation – negotiation skills are something you learn over time. Every landlord, seller, buyer, and tenant will have different factors of leverage and requirements when it comes to property negotiation. As the agent or the broker to the deal, your advantage will be in seeing those factors of leverage and the requirements that can be satisfied. That is how a good negotiator works.
- Inspection – the inspection of a property will happen for a number of reasons and preparation is required. Every listing will have strengths and weaknesses impacting the inspection process. Your job is to use them or work through them to achieve the best result. That is where property knowledge and local market information will be of high value.
- Documentation – some property lease and sales situations are very complex. Expert information and assistance will be required when it comes to complex transactions. Make sure that every contract or lease that you create is correctly designed for the property and the client’s situation.
- Database – your database will be the most important business tool that you have available. Spend time every day connecting with people within the database and adding new people to the process. Over time the database will give you plenty of leads, and referral opportunities. From the database you can create a specialised list of VIP clients and prospects.
Looking at all of these things, you can see how important the commitment and the skills of the agent will be to their progress in the industry. They say that nothing really comes easy; certainly that is the case in commercial real estate brokerage. Be prepared to put in the hours and improve your skills over time. That is how you can be a very successful agent in the industry.