In this property market we come across many sellers of commercial property that just want too much money. Here is an article from our Newsletter for Commercial Real Estate Agents.
The problems with sellers of commercial property today usually stem from all or some of these:
- They fail to recognise that the price of property today is different than when they purchased the property a few years ago. In many cases the price of the property has fallen!
- They do not acknowledge the comparable property and market prices that are in the same area as their property today.
- They use an agent that has really no idea of how to market the property or condition the owner of the property to today’s property challenges
So how do you battle with these issues? In one word it has to be professionally. If the client wants to list their property for sale at an unrealistic price then why take on the listing? Why would you waste your time on something that is overpriced and overrated?
Here’s a strategy that is useful for agents to use.
- If the property is well priced then I would strive to get an exclusive listing and service the client very well for a period of 3 or 4 months. If the property has not sold by that time, you would have to say that something is really wrong and it is better to take the property off the market for a while. A key strategy of the exclusive listing process is Vendor Paid Advertising; ask for it as part of the listing process.
- If the property is overpriced and the client is not receptive to realistic market trends and discussions, then I would offer to take an open listing only on the chance that something would come along that can be converted to a deal. Understanding that an open listing is not taking much of my time, it is the client that needs to be prepared for the extended time on market. If that is their wish then the strategy is OK.
It pays to be firm and direct with property owners in the listing process. You are not a charity, you are a professional and your skills and time need to be protected on those properties that are packaged correctly for sale. Build your commercial real estate business the right way, and the listings and commissions will come to you more easily. You can get more detail on our website at http://www.commercial-realestate-training.com/