Some listings in commercial real estate are quite slow to attract enquiry and move to the next level of an offer or negotiation. That is where our creative professionalism is so important for the clients that we serve.
Sometimes, you will find that the listing will stay on the listing books for too long. In such situations, it is necessary to try for a listing extension. Your skills in client communication at that time will be fully tested as you ask for more time. The client must believe that you are still the right person to continue to work on the property and handle the challenges that it or the property market presents. Are you the best agent to stay on the listing for the future?
Time on Market Problems?
Why will a property take longer to sell? Try some of these for starters:
- The property market is slow to respond due to economic circumstances in the region or the business community
- Enquiry is low for the property type or location
- It could be the wrong time of year to market the property
- The price range for the property is too high or it is out of the range of most buyers
- There are too many other properties on the market currently and those properties are not moving.
- The target market for the property is too narrow or wrong for the listing
- Not enough marketing was done at the time of initial promotion
- Too many new properties are coming into the market creating a situation of oversupply
- The business community is moving from a purchase priority to a lease priority
There are plenty of reasons for listing ‘stagnation’. You may also have other local issues that are also evident in your location, and those that you believe are fundamental reasons for the slower listing enquiry. Either way, you must know the reasons behind a ‘stale listing’ and its failure to attract local property enquiry. Strategy then takes over; that’s your job.
Recommendations That Matter
When you have the fuller information for the slower enquiry rate, you can concentrate on the property owner and package up a series of recommendations to win a listing extension of time.
Consider these strategies in asking for a listing extension:
- Provide a plan of change to the listing and its marketing, pricing, and inspections.
- Identify a new target market of buyers or new ways of approaching the target market.
- Revamp your inspection processes to show the property in a new way.
- Get the client to lift the presentation of the property to encourage more enquiry.
- Create new advertising layouts and copy so that all ongoing marketing will be ‘fresh’.
- Get some new photographs taken of the property to show different features and angles of the building, the internals, and the surrounds.
- Give the client some alternatives of marketing and pricing to help them decide on the future promotions.
- Ask for an adjustment to the method of sale or pricing if you believe that change will attract more enquiry.
- Change the method of sale to suit the preferred target market.
From these issues you can create a timeline of changes for the client to see and consider. The clearer that you can be in this communication with the client will help you in winning a listing extension.