In this commercial property market, the process of property negotiation is specialised and refined. Top commercial agents build their negotiation skills over time and know how to transact a sale or lease with a reasonable chance of positive result; even in these tougher market conditions.
In this property market, buyers and tenants are in short supply. It is a buyer’s market and a tenants market in most locations. When a good and qualified property enquiry comes your way, it may be the only enquiry that you get for that particular listing; the property owner should be aware that they must not hold out for some high price or rent that the market would not entertain today. Yesterday’s prices and rents are just that; today’s property market is where things are at, and the client should be helped to understand that fact.
If you have a genuine buyer or tenant for the property, then the negotiation with your client has to be factual and supported by relevant market information. Here are some ideas for that:
- Current listings that are not sold and remain on market. These listings will frustrate the marketing of your clients listing.
- Find out the prices of properties that have sold recently and where they are located. Why did those properties sell? Is your client’s property anything like these other properties that have sold (or rented)?
- A summary of improvements in sold properties that make them more marketable today
- A list of the improvements and configurations that buyers and tenants are looking for when it comes to buying or renting a new property.
- A summation of supply and demand as it applies to commercial and retail property locally.
When it comes to starting any property negotiation it should be assumed that you will qualify the parties to ensure that they are valid and can act in this time of economic pressure. There is no point in wasting time with people that really do not have the ability to transact.
So here are some negotiation tips that you can apply to most property transactions today:
- If possible get the parties to meet you in your office or territory. Get them out of their traditional business environment.
- Get offers in writing at all times. That also applies to counter offers. Unless the parties are prepared to put something on paper, you have little of substance to work with.
- If you strike any hurdles in the discussion moving to an offer, ask questions and move to a deeper level of discussion on any sticking points. In most cases the questioning process will help the other person display their fuller intentions or concerns.
- You can back-track in the negotiation to things that are in mutual agreement, so you have a base of agreement to work with.
- Seek to fully understand the other party before you open the negotiation. Use market knowledge and facts to move the conversation forward. It is always hard for the other party to refute evidence or established facts from the market.
So how does a ‘top negotiator’ achieve that tag or brand? They close more deals because they practice their craft and know the market. Does that sound like you?
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