In commercial real estate today you should be very careful to correctly qualify the prospects that you work with. Mistakes can be made if you do not get all the facts and figures relating to the person or company that you are dealing with. Here are some tips from our Newsletter….
Here are some common problems:
- Lack of clarity on the improvements required in the property
- Locational issues that hinder business activity
- Price challenges that will not be resolvable
- Rent and lease issues that cannot be compromised
- Lack of money
- Poor timing
- Incorrect decision makers
- Expansion requirements that cannot be satisfied
So the list goes on. The fact of the matter is that you really do need to know what questions to ask and how to do that before you take people to the property. Just because they may be ringing you from the signboard or the internet, doesn’t mean that they are already qualified to inspect. Ask the right questions before you act on the inquiry.
Here are some good questions to ask as part of qualifying a prospect today:
- How did they get to you today? What have they seen that is making them call you? This information is really helpful because it lets you know what is working when it comes to marketing of listings locally.
- What do they know about the area? It may be that you have to give them a local area briefing or brochure. Plans and maps will also help.
- Have they seen other properties already? Other properties may have influenced their thinking when it comes to the local area or the value of properties and rents.
- Are they working with other agents locally? If you are up against other agents now, you might as well know that early in the process.
- What are the key factors of selecting a property? Improvements, services, and amenities will all have something to do with property selection.
- What is the timing of negotiating and settling on a property?
- What improvements must they have? There will be a ‘short list’ that must be satisfied over everything else.
- What transport needs do they have for their business and staff? Public transport, highways, car parks, and street access are all factors to consider.
- Where do they get their raw materials from and how do they send off the finished products from their business location? This could influence property selection.
- What communications systems do they need for their business to operate?
- Do they have special power, energy, environmental, or operational requirements?
You can add to this list based on location and property type. Asking the right questions will help you close more inspections and negotiations. Match the person to the property before you arrange the inspection.
Get more tips like this from our Newsletter for Agents.