Saturday, June 2, 2012

Core Values for Top Agents in Commercial Real Estate

In commercial real estate agency there is a lot of difference between a top agent and everyone else. Many agencies do not have a top agent as part of the team.  So what is a top agent?  The top agent understands the requirements to perform at a high level with each and every listing that they take on.  On that basis, you will find that these agents rarely take on open listings.  Here are some tips from our Newsletter.

Openly listed properties with a number of agents are generally a waste of time to a high achieving agent given that the client is not giving the agency or the salesperson appropriate control and trust for the long term marketing of the property.

Top agents prefer to list properties on the basis of exclusive listings for lengthy periods of time.  They understand the necessity to specifically market each and every listing into the prospects and targets within the local area.  That takes effort and time.

Agents of this type can and usually do establish core values and systems to work by.  Here are some ideas to help the process for you:

1.       Not all listings will be taken on as listing stock by the agent.  In the first instance, they will normally inspect the property and the local market to understand the marketing and enquiry factors that apply to each listing.  If the property or the market is difficult, they will likely avoid the listing on the basis that it will take their time away from other quality properties currently listed.  Top agents make sales and leases happen; they do not sit on unsold and un-leased properties for very long.
2.       Given that almost all listings will be on an exclusive basis, vendor paid marketing will be required in most normal circumstances.  Those marketing funds will equate to approximately 1% of the potential sale price.  The marketing funds will be paid by the client in advance prior to any marketing activity being commenced.
3.       When it comes to listing and marketing commercial and retail property, it is not unusual to have complex and comprehensive information memorandums being prepared relative to the particular listings.  Given that this is a time critical and detailed process, it is normal for a top agent to charge a fee for the preparation of the information memorandum.  This fee should also be paid prior to any marketing commencing, and be paid by the property owner.
4.       When it comes to marketing a property locally, signboard presence will always be desirable and recommended.  Most good properties are sold and leased into the local community of property owners and businesses.  With top agents, the signboard will be specifically designed for the relative property and carefully placed for maximum exposure.  Enquiry has to be generated from the signboard as quickly as possible when the marketing commences on the property.
5.       These high performing agents will normally keep close to their clients throughout the transaction recognizing that constant feedback will allow easier negotiation when the time arises.  It is important that the clients feel relaxed and trusting of the agent throughout the entire marketing process.
6.       When a transaction is under negotiation, the process should be handled personally by the agent.  All negotiations are to be conducted in a face to face situation unless remotely located parties prohibit the process.
7.       The signing of contracts and leases will be made in the presence of the agent.  Once the contracts and leases have been created, they will be followed through by the agent is appropriate to ensure timely completion and satisfactory outcomes.

Top agents understand the value of frequent client connection and communication.  It is important that these are agents provide an exceptional level of client interaction that is superior to the other agents in the local area.  You find that this is really the only way that referral or repeat business be obtained.

You can get some more tips in our Newsletter for Commercial Real Estate Agents or at our main website.