We are going into a new property cycle with the Covid19 health event around the World. Everything you do now will likely be sales-related, and how you spend your time within that focus is so important. Leasing will be less active until business activity grows again.
Accept that things have changed in your location when it comes to just about everything we do, however, the listings are still there and the only way to find them is in talking to people. The telephone will be the best way to give your real estate business momentum and opportunity.
Most people are at home or in situations where they will answer the telephone, so you are going to get more connections now as the ‘lock-down’ situation continues. Ask questions of the people you can talk to, and offer professional services, information, and ideas.
People and Situations
Now, the commercial real estate market is all about those people that want to sell, and those that want to buy. Exclusivity will be a big part of progress in the property market. Look into and for the sales listings. Control your listing stock.
The people that must move into a property transaction now are genuine in their need for help and yet confused on what to do. They are likely to be cautious as well. Local information and solutions will help you get closer to these people. A professional approach will help you get closer to people.
What Do You Want?
What you should want to achieve in this property cycle is predominantly something like this:
- Connecting with people frequently and continually to provide helpful guidance about property change and activity
- Controlling your listing stock by exclusivity so you can progress listings to a better and more timely result for your clients
- Matching people to property situations and listings in the location and within property types
It is interesting to note that sales transactions are still happening through modified marketing, inspections, and negotiation processes. Think about what you are doing with that now, and how you can create a pipeline of churn. Use the property information in your location for conversations with key people.
Use Your Market Updates
It is wise to have a selection of market updates to use depending on property types and situations. When you have a listing presentation to make or a property market update to provide, that information will be the key to progress.
Gone are the days of taking on a property simply to have it on your books. Only take on the listings that you believe in and those that have a client owner that is realistic to current property market conditions. During the shifting property cycle now, prices will change, and some property investors are waiting to act for that very reason. Having a selection of listings will help you through things. Having a realistic client is also a big part of getting a result.
Property Cycle Reset
So, what is going to happen here in this new property cycle? Prices will change in this property market, and it is quite likely that prices will fall as part of a buyer’s market trending pattern. That says that yields will also fall although the stability of rents will be a big part of property funding and approvals. Any tenants in a property will have to be of some security and quality for lenders to consider advancing money. The loan value ratio will also likely fall to around or under 50% for some immediate time. Some buyers and investors can operate at that level.
So there are sales to move on and people to work with. Get plenty of listing stock around you as that will be the secret to success in this property market and for the immediate future. Have listings to quote and sell, and people to talk to about those listings. Methodically working through your lists and property records will help you find people.