In commercial real estate today you see so many agents and brokers that work for buyers and tenants of all types without a formal appointment to do so. Those buyers and tenants claim to be looking for something by way of a property to own or occupy, and then the agent spends lots of personal business time and resources looking around for that ‘magical’ property and investment.
Why is this a problem?
Invariably the buyer or tenant is very likely talking to many agents locally at the one time, and all of those agents are committing precious resources chasing around the local property market to find the ‘ideal’ occupancy or ownership solution. The person making the inquiry is very likely going to transact a property sale or lease at any time and with any agent that finds the right property.
So what is the problem here? You cannot control that inquiry or negotiation therefore you cannot control your real estate business or any negotiation that may be possible.
There is a core message that is so important in our industry. You, as the agent or broker must control the listing stock. When you do that, the local people are coming to you (be they tenants or buyers) to inquire or inspect. It is far better to be a listing agent working on controlled stock for that very reason. You control the property and the client; on that basis the inquiry comes to you automatically, and you negotiate the deal for the client.
A good process, don’t you think? Don’t just chase around after buyers and tenants if you have a choice; find the property listings and capture them exclusively. The buyers and tenants will then come to you.
Let’s put a ‘proviso’ on this listing agent focus. Exclusivity is part of the listing process, and open listings don’t really matter, and certainly have little value to the growth of market share for any agent or broker. Can you accept that rule and work with it?
The right things
When you are the listing agent a few things fall into the right places, and that will help you with your property business. Here are some ideas for that:
- Client creation and retention – When you find the client, you control the relationship over time. That ownership puts you in a favorable position for long term income opportunity. How many clients do you really know deeply now?
- Focused negotiation – You are then the only agent or broker that the client is listening to. You have their attention and trust. The negotiation process gets a lot easier.
- Referrals are more achievable – When you work closely with the client, a successful transaction is more easily obtained and the resultant referrals can be converted when the time is right. Repeat business is also a by-product of working closely with a client in this way.
From these three simple facts, you can see why the ‘listing agent’ process is more important than any other business strategy in our property industry.