One thing that really matters when you pitch for real estate business is the ability to prove you really do know the market. So many agents just say they know the market and have little to show or prove that they do. Verbal comments are of little substance when it comes to proof. Show and tell is the way to go.
To prove that agents know the market I recommend that they use a series of graph displays that track things such as these:
- lease rents,
- time on market,
- sale prices,
- incentives in leasing
- supply and demand for space
- vacancy factors
- listings on the market currently
- regional growth (community and business)
The best graphs for this are:
- Line or column graphs for results
- PERT and GANTT graphs for processes
So many times I have seen this graphing process win the business in real estate agency. It is simple to use and the client can interpret it in seconds. They do not have to read anything. It’s a powerful tool in the real estate agency game. You can also talk to a graph; it’s a powerful tool to win the presentation or pitch.
You can get more tips on real estate agency at http://www.commercial-realestate-training.com/
When working as a commercial real estate agent you will see many types of property in many situations and levels of quality. When it comes to selling the property, there is a factor known as the ‘liquidity factor’, and it will impact the sale and price outcome. In simple terms the ‘liquidity factor’ is the time it can take to sell the property.
By comparison to other types of investment, commercial property has a high liquidity factor as it takes time to sell it; usually days or weeks. The share market as an investment type is just the opposite with a low liquidity factor, as shares can be sold almost within the hour. People choose to invest in commercial property as it is relatively stable and less volatile than shares. There is however the liquidity factor to contend with when it comes to property sale time.
It pays to take the seller of the property through the liquidity discussion so the right choices are made when you take the property to the market for sale.
Essentially the ‘liquidity factor’ is all about the time the property will take to sell. It is driven by things such as these:
- Location of the property
- Tenant mix
- Anchor tenants
- Size of the property
- Amount of money required to purchase the property
- Lease profiles and documentation
- The age of the property in the local area
- Changes to the population locally
- Changes to the business sentiment locally
- Methods of sale to be adopted
- Identity of the property in the local area
- Price pressures locally
- Comparable or competing properties in the local area
All of these factors will have positives and negatives when it comes to the time of sale. Importantly it is up to you as the real estate agent to help the seller understand the ‘liquidity’ of the property and how it will impact the choices of property sale.
You can get other free tips and resources for real estate agents at http://www.commercial-realestate-training.com/