Tuesday, July 10, 2012

Commercial Property Agents - How Can You Get the Vendor to Tell You the Truth?

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Know your vendor clients

Most agents and salespeople in commercial real estate will tell you that you must qualify buyers and tenants.  Certainly that is the case given that you do not want to waste time with people that will not act on a property or cannot do so.  That being said, you should also qualify the vendors of properties before you take on their listing.

Check Out the Vendors!

Some vendors are unrealistic or uncertain about the sale or lease process.  Any ‘grey areas’ with these property owners should be identified and fixed before you go too far into a listing arrangement.

Top agents always check out the client and the property before they move on the listing or accept it into the agency books.  A bad property or an unrealistic listing can waste a lot of your time in this tougher property market.

Get all the facts and set the rules of the listing before you accept it.  Some agents have books full of listings that are not selling or leasing; what a gross waste of everyone’s time!

What's the Potential of a Deal?

If you have a listing, then it should be one that you know has potential to sell or lease.  If something has not moved on the books for over 4 months, then go back the client and get a price or rent adjustment; make the property more attractive to the market.  If the client will not listen to your logic or process, it is better to move on to other properties where the client will adjust and help the sale or lease process.

Create Rules to Listing

Here are some rules to qualifying a vendor in the property market today.

  1. The real reason for sale or lease should be identified.  Somewhere in the clients thinking there will be a single reason for taking the property to the market.  The client needs to be open and frank with you on that reason so you know how you can approach a deal or negotiation in today’s property market.  Ask the right questions here.
  2. The time on market will vary by property type and location to location.  Tell the client what the time factors are doing and make sure your listing appointment suits the expected time on market factors that you know are active at the moment.
  3. Price or rent will always be an issue of marketing and negotiation.  You will know what the current expectations are of the buyers and tenants in today’s property market.  Every listing should target those expectations, and the client should be open to the correct property pricing or rental.
  4. Exclusivity is a requirement in all listings today.  There is no real point in taking on an ‘openly’ listed property that other agents are ‘jumping all over’.  The client will be confused and the negotiations that you attempt will be difficult.  Only take on an ‘open’ listing if you truly believe that you can introduce a qualified buyer or tenant to the property soon.  When you do that, make sure that the client is committed to you on a valid agency appointment first.  So many clients in ‘open listing’ situations have attempted to take away the negotiation from the agent and remove them from the commission payment at the close of the deal.  ‘Charity’ is not an element of commercial real estate agency today.
  5. The method of sale or lease should be that which will work in the property market today.  Make the right choice here and ensure that the client does the same when it comes to listing the property.

The listing of a property for sale or lease is the first stage of positioning the property to creating enquiry in the local area.  If the listing is correctly taken, the chances of sale or lease are significantly improved.  You are the agent so make the listing work for you; give real attention and focus to the listing process.

If you would like some more tips on listing commercial property and working with your clients or property owners, you can get that right here in our regular property bulletin for salespeople and agents.