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High Value of Real Estate Agency Advice

Some clients in commercial real estate are unaware that they have a problem with their property, or do not really know or can define specifically what the problem is.  They struggle to find the way ahead; they do not really know or will admit that they cannot get themselves out of a property problem.

Do you think there are some businesses and property owners out there at the moment with problems? Of course there are, and you as the real estate agent or broker have to be the relief to the property pain.  You can only be so when you really know what you are doing.  That means a really good knowledge of property types, leases, and rents, building costs, regional demographics, and operating costs.

It is not sufficient to think you know how to sell or lease a property.  That skill is not enough as most other agents will think the same.  After coaching agents for many years, I know that the reality is most of your competition is very ordinary in knowledge and property understanding.  That is the leverage you should work with to generate a massive real estate sales and leasing business.  Serve your clients as the best choice in the industry.  Is that hard?  Perhaps it takes more personal effort and certainly more study, but the rewards are significant.

Let’s just look at the types of clients you could have for a moment; they are landlords, business owners, tenants, and investors.  Within those groups you have differing relationships to the property improvements, rent, lease, location, operating costs, tenancy mix, and the list goes on.  So what do you know about these things?  What should you do?

Become an expert in every sense of the word.  Supply the best and most important information about property that you can for the client.  Make sure that you are better than the rest of the real estate people in the local area.  Become the property strategist and not just a salesperson; know what are the real reasons for a sale or lease, and help the client understand them.  Provide the best timings to use in the sale or lease processes.

The problems and challenges that these client groups have are radically different than each other.  Your solutions and responses should be set accordingly.  The best model for a real estate agent or broker in a client relationship is to become an advisor that is trusted.  Your knowledge should stand head and shoulders above the rest.  There are three stages to the process.

  1. Seek to become the clients trusted advisor from the outset.  This means building the relationship before the client really wants to do something with their property.  Prospecting is essential every day of your business life.  Your database is the tool to progress.
  2. Get the client to agree that there is a need with their property or business.  Knowledge of the property types, performance issues, lease strategies, development alternatives, tenant mix alternatives, are just some of the things to learn.
  3. Plan your solutions around the problems.  When the client fully understands the problems that you have identified with the property, and that you really know what you are doing, the choice of property agent becomes an obvious choice.

Stop thinking that as an agent you must discount your commission, or pay all the advertising costs for the client just to win the new business.  These clients are not the ones you want.  In most cases they are the hardest to deal with because their motivation is ‘cheap’.  Logical decisions are not part of their mindset and negotiations are therefore harder with these clients.  More often than not the listing does not sell because the client will not listen to the market trends and choices (they think they know better).  Time does invariably take care of these unreasonable clients, with no sale resulting and a distressed property sale or lease later on.  You can then move back into the picture to offer your special services.

Be the best real estate agent out there and make sure your clients know it.  Chase the quality listings owned by quality clients that will listen to the market trends and choices that you offer.

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Finding Buyers Commercial Real Estate

In this commercial real estate sales market you need to find well qualified buyers effectively and quickly.  As part of this process it is worthwhile to sit down with the seller of the property to brainstorm all the regional property activity and history that they have seen recently.  You do this by asking specific questions at the time of listing. 

Well directed questions give you a well directed property campaign.  In many cases you can set your sights on a good channel of buyers by just taking some of the further steps below.

Local Market Intelligence

Certainly some of the local market intelligence you should bring to the seller as part of the property listing and appointment process, after all that is the main reason that they will hire you as the real estate broker or agent.  Do not however overlook the market intelligence that the seller could have gained from owning the property and the business in the region for a number of years.

It is quite likely that these questions below will help you extract more ideas from the property owner and perhaps even highlight the ideal type of buyer that you should be targeting.  After all is said and done, the seller of the property knows the property, the industry, the precinct, and its history better than anyone else.  This then makes your job of selling the property all that much easier. 

Key questions to explore to help find the right property buyer:-

  1. Who has a similar property and possible expansion objectives in the area? – This should be all the local businesses in the precinct for the surrounding 1km.
  2. What companies in the region have recently undertaken acquisitions? – Even in a difficult economic or financial market, some businesses are still going very well, so you need to look out for these growth activities or needs that require more property to occupy.
  3. What companies in the area are highly active and quite profitable?  Who or what are they and do they need more space in your precinct?
  4. What are competitors of the subject property and its business?  Do these competitors need more property to operate from in your area?
  5. What established contacts have enquired regards other properties recently from other sale campaigns?  Are they still active and could they look at the new listing coming on the market?
  6. Who sells to the same customers that the subject property sells to?  Could this be a channel of interested buyers?
  7. Are any of the existing customers of the property vendor considered potential purchasers of the property today?
  8. Are there any industry related executives seeking to move into their own property and run a similar business themselves?

From the above list, you will achieve an ideal profile for the property being sold and the targeted buyer that is suitably placed to purchase.  Document the profile to the seller of the property and achieve mutual agreement on the profile before you start any campaign.  You should be attempting to profile the purchaser with the following categories in mind:-

  • public or private company
  • private individual or investor type
  • target industry
  • target equity
  • target timing
  • target location
  • target cash flow

From the above list, you can then match your property promotion to the buyer profile most easily.  The sale of a commercial property and the location of a buyer is not just a function of advertising and waiting for enquiry.  Gone are the days of advertising the property and waiting for the telephone to ring.  In this market you have to make the telephone ring.

The most successful agents and brokers in this market are exploring many channels of property interest for buyers.  In markets like this, it is the targeted market that you identify and how you tap into it that really matters.

You can get more on this strategy for finding property buyers here http://www.commercial-realestate-training.com