Thursday, July 12, 2012

Commercial Agents and Realtors - Farm Your Territory The Right Way

property agent writing in day planner
Build your personal system

The commercial real estate agent of today must build their market share each and every day.  Not a day should pass without some prospecting being done in the field.  It is remarkable just how many agents do not do this.

What's Your System?

Those agents that can develop a system of prospecting and stick to it are those that develop a dominant market share; the rules to the process are really quite simple.  It does not matter how successful you have been or are now in the industry, the prospecting must start and then go on.  

Why would you stop prospecting for new business?  It is really a dumb question.  You should never stop prospecting.

Set Some Rules

To grow your market share, here are some tips for integrating into the system that you can develop:

  1. Determine why someone should use you as an agent as opposed to the others in the local area.  There is no point in being the same as other agents.  Something you do has to be better than that which is provided by the others that you compete against.  The answer is not generic (e.g. ‘We have the local knowledge’, or ‘We have been in the area for years’).  The client wants to hear specific and real reasons to use you.  The ideal way to do this is to specialise in a property type and property solution.
  2. Watch the competition agents for listing opportunities.  Some of their listings will not sell or lease; they may even neglect the marketing of a property.  Over time those listings will be a prime target for you to approach the relative property owner and offer your services.
  3. Owner marketed listings that have not sold or leased will always be a target for listing.  That being said, those property owners can be hard to negotiate with.  They commonly have an inflated view on price or rent and will tell you to add your commissions to the already high price that they are asking.   If you choose to work with these people, negotiate hard, and drive a quality listing.  The reality of the situation is that the property owner does not have a database of qualified prospects; they have to rely on advertising to put the message out.
  4. Use other listings as leverage for market growth.  When any other agent puts a sign on a property in your area, use that listing as a reason to talk to the other property owners and businesses in the same street.  Some may choose to compete with the current listing that has been marketed by the other agent.

The growth of your property market is a deliberate process; it will only happen when you drive it.  The significant advantages you have here are the ability and the time to do it.  Get your prospecting started and do not stop for any reason.