When a commercial investment property is taken to the market for sale or lease, you will get some property owners that like to control the process and on that basis they can be very reluctant to give out the listing ‘exclusively’. They think that by spreading the listing across a number of local property agents, they will get the best coverage of enquiry.
Of course, that assumption is very wrong and quite counterproductive. Most open listings stay on the property market for a very long time. Exclusive listings sell faster due to the marketing efforts and dedication of the particular listing agent.
Here are some facts about ‘open listings’:
- The client will not generally tell you the whole story about the property listing until you bring them an enquiry.
- Many agents will be feeding the client at the same time with stories and ideas from the property market.
- Negotiating with clients that have their properties ‘openly listed’ is a difficult process given that they will not generally trust everything you say.
- Multiple agents confuse the client with conflicting market trends and evidence.
- These listings will stay on the property market far longer and will by comparison have limited enquiry.
- The marketing spend by clients will be limited and therefore enquiry will be ‘luck’ generated more than personally driven.
- These clients think that their ‘friend’ in the other brokerage should have a chance to sell the property as well.
- Inflated pricing will generally attract open listings. Why would you take on a property that is priced well above market?
So if you really want to market a listing of this type, what do you have to do? Try some of these ideas:
- Pitch the listing at the right price. If the client will not adjust to the market conditions and price ranges, then walk away from the listing.
- Condition your client to the types of targeted buyers as you see them. You can use the results of any inspections to do that.
- Show the client the limitations on inbound enquiry for those properties without ‘exclusivity’. Given them the chance to take up ‘exclusivity’ with you.
- Convert some vendor paid marketing funds. If the client is serious about wanting a sale, then they need to spend some money on marketing. Show them why that is the case.
- Give plenty of feedback so the client knows that you are the better agent helping them.
You can convert ‘open’ listings if you really try. It is hard work and the pressures of other agents talking to the same client can be derailing to the results that you are promoting. Make your choice to work on the best listings and clients that show a reasonable chance of conversion.
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