In commercial real estate you will be doing proposals for your clients and prospects on a regular basis. You would think that being asked to do a proposal is a good thing; in some ways it is, although many a prospect will ask you for a proposal simply to get rid of you. The hard truth of the matter is that many a prospect is going to use your proposal as a reason to choose another agent to sell or lease their property. Here are some tips from our Bulletin this week.
If a prospective client asks you for a proposal, and you are meeting with them when they ask the question, respond by saying something like this:
‘Why would you want that? Have I not been clear and helpful in the discussion here with you today? What is it that you need more information on?’
Top agents know that the best time to sign up the client is ‘now’; not at some later time when ‘they have had time to think about it’.
So the request for a proposal is actually a strategic way of not making a decision on the spot. What are the chances of agreeing to your proposal later when you give it to them? Probably it is no better than 20% in most cases.
If you do decide to create a proposal for the client, do so understanding that the client is genuine in the request and that you will not be wasting your time. A good proposal to sell or lease commercial real estate will include some or all of the following:
- A clear statement of the clients requirements to sell or lease the property
- A description of the property or the tenancy so that there is no misunderstanding in what is intended and what property it applies to.
- A summary of other properties in the local area that are regarded as competing with the listed property. You will need to include a statement that describes the prices and rentals of those other properties.
- A description of the local property market as it exists today, taking into account the factors of supply and demand.
- The factors that will make the property relevant to the target market in the local area.
- A marketing brief as to how the property should be taken to the target market. You will also need to supply samples of advertising and content that will apply to the property as you know it.
- Expectations of price or rental given the prevailing market conditions.
- A resume of issues that should be attended to before the property is taken to the market
- A visual strategy to the process of moving forward. That can be a Pert or Gantt model that summarises the sale or lease process in stages
The list can be expanded subject to the prevailing market conditions and the property type. If you are going to do a proposal for the prospective client, then make sure it is a good one. First impressions are everything. Get some more tips in our Bulletin.