Better commercial real estate listings and clients are frequently ‘just one step away’ when it comes to growing your opportunities in commercial real estate brokerage. That one step involves prospecting and questioning.
The last step to take will be the difference between a top agency and ordinary brokerage; however it is the step that is the hardest to take for many salespeople. Without a prospecting and contact model, many agents struggle between the peaks and valleys of listing performance and commission income.
It takes about 3 months of effort to break into a new level or cycle of listing activity and market share. Three months can be a long time for some brokers to focus and drive the prospecting model ahead. From a ‘competitive’ position that can be an advantage to those agents and brokers that can get organised and stay focused.
So the last step to take is always ‘prospecting’ and that will be ‘getting in front of the right people at the right time’. For that purpose, every agent or broker should have a solid system of client and prospect contact; that will help them stay on track on a daily basis. The outcomes to a good contact system are usually better commissions, more clients, and quality listings.
When you reach out to talk to a new person about their property needs and they decline your services, remember that the listings are just one step away. I go back to the point that extra step is there and it can involve:
- Staying with the contact over a period of time
- Asking the extra questions about sales, leasing, or property management
- Checking out the adjacent properties and businesses in the area around a listing
- Understanding the pressures of property performance, income, and lease management
- Providing a ‘repositioning’ strategy behind the property issues and challenges
- Knowing that other agents or brokers may be under-servicing the client
- ‘For sale by owner’ listings can be a real headache for some clients
Many agents and brokers don’t win listings easily because they do not take the ‘extra step’.
To tap into this ‘pipeline of opportunity’, it is best to have a good database where you can track the information and the leads. Every time you go back to a person for ongoing contact, make sure that you know what happened and what was discussed at the last point of contact. The client or prospect will remember those facts and will be impressed by your diligence in process and understanding.
You can get more tips like this at our main website here on commercial real estate training.
When it comes to selling and leasing commercial property today, it is really important that you understand the factors relating to competing properties in your local area.
Prices and rents for commercial and retail property will change throughout the year. They will also change by location and property type. Assessing the changes will allow you to be accurate and relevant when it comes to each and every particular property listing or presentation.
It is interesting to observe the inflated motivations and intentions of clients when it comes to setting prices and setting rentals in the sale or lease of any property. Most clients have a very good understanding of the price or rent that they require, with very little understanding of the actual results in the market today. This then says that every property listing should be well considered and negotiated between the agency and the client so that the property can be successfully marketed. You do not wish to waste your time now do you?
Top agents will avoid unrealistically priced properties and those clients that seem reluctant to accept the prevailing the factors of the local property market. Let’s face it; there are plenty of other listings out there to focus on.
Some agents will still however take on a property listing that is overpriced, expecting that they can condition the client over time to the true market conditions. They may also use a time based method of sale such as auction or tender to achieve that outcome. The strategy does work, providing you are well skilled in the client conditioning process.
Here are some factors to help you with local property market conditions and prepare yourself for future listing situations with clients.
- Look for similar property types in the local area. Gather information regards those properties when it comes to marketing strategies, prices or rentals, and time on market. It can also be that the agents involved with those other listings are not servicing or marketing the properties well. You will need to form an opinion that is relevant and accurate. Look at all the competing properties locally and inspect them in some basic form prior to using them as evidence with your client.
- Understand the differences between properties when it comes to improvements. Also consider the locational factors, and the size of the properties in question. Can one property be considered more attractive than another, and for what reason? Will that have an impact on property marketing, potential enquiry, price, or rental?
- Assess the time on market for each property type in your territory. The time on market will be impacted by current property enquiry and the supply and demand for premises. Future developments will have impact on existing properties locally. The local business sentiment will also have relevance to the time on market.
A successful property listing will generally be created providing you understand the prevailing market conditions, and can convince the client of those factors. It takes practice, however the client conditioning process will help you in establishing well priced listings that will attract enquiry. That’s what commercial and retail real estate is all about