Commercial Agents – Qualify Your Client Base the Right Way

two men talking
Qualify your clients so you do not waste your time as an agent in commercial property.

There are many types of clients and prospects in commercial real estate.  They will have different pressures and priorities relating to property sales, leasing, and property management.  This is where top agents tend to excel given that they have taken the time to understand the clients and their prospects needs.  Here are some tips from our Newsletter.

Most transactions initiated by top agents are created from a match of circumstances and people.  Many transactions occur off market between willing parties that have been correctly matched and serviced.

To move down the path of exceptional client connection there are some rules that can apply to the evaluation and implementation process.  You can refine the following points to suit your market and property specialty:

  1. The most obvious factor in all client connections will be the need to establish the identity of the decision maker.  You need to know who that person is and how they make decisions.  You also need to know how to contact them directly.
  2. In commercial real estate it is not unusual to have unusual circumstances relating to the decision-making process.  The businesses and boards of directors that we deal with have certain criteria and procedures that need to be satisfied.  The circumstances can apply differently when it comes to sales, leasing, or property management.  In many situations these clients or prospects will require reasons to make a transaction or decision.  They are accountable to others and the reasoning processes are all part of building a case to do a transaction.
  3. Most transactions will have some form of obstacle or challenge.  They will be things that you can work with successfully and through in most circumstances, providing you understand the bigger picture from the prospects or clients position.  Match the client to the property; the process is quite effective.
  4. Look for circumstances that match when it comes to dealing with people within a transaction or a listing.  The match will give you something to work from and grow the transaction.  In many cases the match will be based around a property type, property size, leasing or investment opportunity, and timing of the transaction.  Great negotiators know how to work through these issues and do the match.
  5. Differentiate your approach and your logic with the transaction through clear thinking and the provision of options.  In many cases you will find that the parties to the deal will agree and accept the offering if you provide them with some alternatives.  The same principle applies when it comes to marketing funds being sourced from the client in the listing.
  6. Your approach in commercial real estate should be that of an adviser.  Whilst you may see yourself as a salesperson, you will find that the top agents are viewed as advisors to the clients that they work for.  To build your advisor profile, you will need market knowledge, and specific experience relating to the property type.  Clients and prospects like to deal with agents of skill and relevance.  They like to deal with the best experts available.

All of the above issues can significantly strengthen your market share and listing capability.  Take steps to build your personal brand as the market specialist you want to be.

You can get more information for commercial real estate agents at our website at http://www.commercial-realestate-training.com/

Commercial Realtors – Market Yourself on the Internet

Here are some tips to help you build your commercial real estate profile on the internet as an expert salesperson or agent.

Commercial Property Agents – Do Not Discount Fees

Office property tower
Every property sale or lease today takes real strategy and effort

In commercial real estate today, we see far too many agents offer discounts and marketing cost benefits as part of the sales presentation or pitch.  If the client is looking for a discount before they will make a decision on the listing, then they are not the client that you need.  It is better to walk away from these clients.  If they are basing their listing decision on ‘cheap’ and ‘shortcuts’ they are likely to be difficult clients when it comes to negotiations with serious and reasonable prospects.  Here is a tip from our Newsletter.

In this market buyers or tenants are very aware of market conditions, and they will not offer above market prices or rents, or enter into unrealistic negotiations with unmotivated vendors or landlords.  There are lots of other properties to choose from today.

The reality of commercial real estate market today is that sales and leasing transactions are slow and difficult to put together.  The average transaction does not occur quickly or easily.  Real focus and effort is required on the part of the salesperson or agency to resolve the property pain for the client, and that takes time and a strategy.  The word ‘discount’ doesn’t feature as a requirement or have any relevance.

Discounted commission or discounted fees in the sale or lease process create the following issues:

  • The agent will be more inclined to work on properties where the fee is more realistic and appropriate for the volume of work concerned.
  • The agent knows that the client is not totally committed to the sale or lease process and on that basis it is more likely to be an adversary in the marketing and negotiation activity.
  • Sometimes a client will look to the agent to cover the marketing costs as part of the promotional campaign.  Most agents in that case will selectively and restrictively market the property within a small budget.

The reality of property sales and leasing today says that we have fewer buyers and tenants to work with for the average property listing.  Levels of enquiry are slower and negotiations are longer.  Getting the message out to the marketplace is more important than ever before.

So the best agents today in their sales or listing presentation will firmly commit to the following process in front of the client.

  1. They will define the best strategy and timing to take the property to the market.  This will include due consideration for market conditions, competitive properties, methods of promotion, levels of enquiry, and pricing or rental strategy.
  2. They will comprehensively determine the target market that best suits the property to be promoted.  When the target market has been defined, it is much easier to create a specific marketing campaign and seeking vendor paid marketing funds.
  3. They will recommend the marketing campaign across a number of initiatives relevant to the target market.  Most marketing campaigns run for a period of six or eight weeks and then slow right down.  A full 60% to 70% of the marketing funds should be spent and committed to the first half of the campaign.  This is how you build momentum and enquiry.  It should also be said that the every aspect of the marketing campaign should be tracked for results; if something is not working, you change it.
  4. Good agents will personally commit to direct marketing including canvassing the streets and businesses, cold calling, and database contact and review.

There are many more reasons to appoint an agent on a full commission than to provide discounts.  Clients should be given the specific reasons why discounts and shortcuts do not work in this market.

Join our Newsletter here, or check out our main website for more commercial real estate tips at http://www.commercial-realestate-training.com/

Commercial Real Estate Job Specifications Work Well

  If you work in commercial real estate sales and leasing, get a good job specification and stick to it.  Here are some ideas as to why this works in a sales career.

Secrets of Top Commercial Property Agents Revealed

Tall buildings
Top Agents choose to be so. They act on and drive their market.

The role of a top commercial property agent is quite special.  They do unique things on a daily basis and then build their business at every opportunity.  Top commercial real estate agents are leaders in the property industry.  They understand the differences between sales, leasing, and property management, and can pitch their services from each and every angle as required.  They can comprehensively cover the market place and the services offered.  Here is a tip from our Newsletter.

So the top agents are real achievers and manage themselves with specific focus, however they lead in the industry due to deliberate steps and strategies that they take every day.  You can replicate the strategies for yourself and create a stronger market share.

You could say that the top agents have a particular mindset, and that supports the actions that they take.  Here are some attributes common with high performing salespeople and top agents.

  1. They place a high value in the connection with the customer or client.  Whilst the prospect may not be a source of business today, there are future opportunities in establishing good relationships now.  The services available to clients in commercial real estate vary between sales, leasing, and property management.  Understanding the differences and then pitching services across the disciplines is highly important.
  2. To extend the relationship and the communications with prospects, there has to be some form of value to connection.  That can be in the form of some local market a property information, newsletter, industry briefing, and market updates.  The whole process should be personalised to the name of the particular agent or salesperson.  Whilst they work in an agency, it is the salesperson that builds the business.  Their name and their personal image is of high value to the ongoing communication.
  3. Prospecting and cold calling should occur on a daily basis.  Top agents will do this themselves understanding that they are marketing their name and their image into the local area.  On average, a top agent will spend approximately 2 to 3 hours each day on the prospecting process.
  4. Every prospect needs to be qualified before the connection is encouraged.  There is no point in wasting your time simply for the requirements having a meeting.  Only meet with the people qualified to participate in commercial property locally.  Top agents understand this process and focus on the higher quality clients in the area.
  5. The negotiation process in commercial property today can be a challenge based on the pressures that apply to the industry.  Finance and other negotiation issues slow the average transaction down and extend negotiation over days if not weeks.  Good agents stay with the process to the very end to ensure that the transaction is completed in accordance with the client’s wishes.
  6. A top agent will focus their daily activities with high priority towards business building and client connection.  Unnecessary matters or things that have low priority should not rank in the business day.
  7. The best agents and salespeople will interact personally with the clients they act for, and tenants, sellers, and buyers as the case may be.  This allows the transaction to be professionally documented and closed.

Commercial real estate today is a challenge for a number of reasons.  There are however many agents still earning significant commission from successful transactions.  You can also do this providing you commit to the self-management process and the clients that you act for.

You can get more free tips for Commercial Property Agents via our Newsletter right here.

Check out our website for more free tips for agents and salespeople.

Top Agents are Not Good Salesmanagers in Commercial Real Estate

So often I see Top Agents given the role of Sales Manager in a Commercial Real Estate Agency.  The process does not work.  Here are some reasons why it should not be done.

Strategies for Tough Clients in Commercial Real Estate Agency

Real estate agenct and client in car
Develop firm skills with tough commercial real estate clients.

When you work as a commercial real estate agent, you will come across clients of all types.  It can be said that the business community breeds some very difficult customers that buy, sell, and rent commercial property.  To deal with this, you need to have a mindset and a strategy to handle the difficult clients in a particular way.  Here are some tips from our Newsletter for Commercial Agents.

One of the biggest concerns regards difficult clients or customers is that many will go behind your back and do the deal direct with the property owner, tenant, buyer, or landlord as the case may be.  You will lose control of the deal.  Clients and customers of this type cannot be trusted and when it comes to commercial real estate, are likely to be the source of many problems.  They commonly seek shortcuts or savings to the detriment of the property agent that introduced them to the property.

First Rule

As a common safeguard measure in commercial real estate, always take notes of your discussions and meetings with clients and customers.  Keep all of your notes on file and readily available for the time that the transaction becomes difficult or disagreements occur.

Second Rule

The second highly important rule in your commercial property profession is that you must have a legally valid appointment to act on each particular property.  Verbal agreements to pay your commission are not ‘worth the paper that they are written on’.

Your agency appointment must be accurate in every respect so the client that you act for cannot avoid the commission process.  The appointment to act will also help protect you in the case of missing information, disagreement, or incorrect information provided by the client.

So what does a bad client or customer look like?  Here are some of the most common problems and issues that you will find in the industry.

  1. They do not pay the commission or the fees for the transaction on time and in accordance with the appointment to act.
  2. They seek discounts or reductions from the agent after the service has been provided and will withhold money as part of the negotiation process.
  3. They constantly complain to other agents regards the promotion and marketing of the property.
  4. They call you twice a day to check about your progress on marketing the property and who you have spoken to today.
  5. They distract you from doing productive promotional activity on the property.
  6. They interrupt you from other essential tasks and take up far too much time on unnecessary matters.
  7. They think that their listing is the only one you are working on and fail to let you get to other things with other people that you act for.
  8. They will not listen to reason when it comes to market trends and activity.
  9. They do not respond to your requests and correspondence relative to the property negotiation.

It should be said that some clients can be genuinely upset due to the poor performance of the real estate agent acting for them.  If that is the case, then their concerns are valid and justified.  It is however the other difficult client that chooses to be so for unknown reasons that needs a particular strategy of control.

As a general rule, difficult clients should be under serviced.  If they are deliberately difficult then the property agent should do what is correct and necessary, but not over service them.  In the longer term and when you find a buyer or tenant, that client is likely to not cooperate in any negotiation when it starts.

Pulling away from a difficult client will help your business grow.  If a listing is not working and the client is just not cooperating, it may even benefit you to agree to withdraw the listing from your books.  Let’s face it; a difficult client today is going to make any property negotiation slow and unrealistic.  When you find a difficult client, take the time to choose your approach and your method of working with them.  Act sooner rather than later with difficult clients.

You can get more tips like this at our website http://www.commercial-realestate-training.com/ or join our Newsletter here.