How can you close more property presentations and sales pitches? The pitches that we do as real estate agents in the one transaction are numerous. Think about these to name a few:
- Pitch to get a meeting with the property owner
- Pitch to get a listing opportunity
- Negotiate on the listing creation
- Sell the advertising package
- Attract the right enquiry
- Present the property to the buyer
- Negotiate and close on the buyers offer
- Negotiate with the seller regards the offer from the buyer
One of the real secrets in pitching your services or offering is to help put the client or other party in some degree of perceived control. In simple terms you give the client some options to consider around the key decision. When the client has options, they do not feel like they are being closed. The key decision becomes simpler and easier. I call this the ‘Option factor’.
The nature of the human mind and psyche is that it does not want to be forced or manipulated. You can use this ‘Option factor’ as a tool of negotiation in commercial real estate sales and leasing.
You can get more free tips and articles online for real estate agents at http://www.commercial-realestate-training.com/
When you work in commercial real estate sales and leasing, the territory dominance that you achieve is largely created by your own personal endeavours.
There are far too many ordinary salespeople out there today. When the property owner wants to sell or lease their property they really do need the agent with territory dominance. That is the agent that knows:
- Where the enquiry is coming from
- What the enquiry is looking for
- The limitations on finance in the local market
- The marketing campaigns that really work
- What deals are being done and on what basis
- How to draw in the right target market for the property.
- When to close in on a genuine enquiry from a buyer or tenant
- Has the majority of quality property listed in the local area
Whilst every agent should know and provide these things, the reality is that many do not do well on the performance specifics.
Looking at these simple issues, they are all related to things that you as the real estate agent can and should take to the seller or property owner as part of the sale or leasing campaign. This is where value and service stands alone as the best way to attract the client to your specific property solutions. Market and territory dominance supported by knowledge and experience will help you attract more quality listings.
You can see more of my free tips and articles for real estate agents at http://www.commercial-realestate-training.com/
When working as a commercial real estate agent you will see many types of property in many situations and levels of quality. When it comes to selling the property, there is a factor known as the ‘liquidity factor’, and it will impact the sale and price outcome. In simple terms the ‘liquidity factor’ is the time it can take to sell the property.
By comparison to other types of investment, commercial property has a high liquidity factor as it takes time to sell it; usually days or weeks. The share market as an investment type is just the opposite with a low liquidity factor, as shares can be sold almost within the hour. People choose to invest in commercial property as it is relatively stable and less volatile than shares. There is however the liquidity factor to contend with when it comes to property sale time.
It pays to take the seller of the property through the liquidity discussion so the right choices are made when you take the property to the market for sale.
Essentially the ‘liquidity factor’ is all about the time the property will take to sell. It is driven by things such as these:
- Location of the property
- Tenant mix
- Anchor tenants
- Size of the property
- Amount of money required to purchase the property
- Lease profiles and documentation
- The age of the property in the local area
- Changes to the population locally
- Changes to the business sentiment locally
- Methods of sale to be adopted
- Identity of the property in the local area
- Price pressures locally
- Comparable or competing properties in the local area
All of these factors will have positives and negatives when it comes to the time of sale. Importantly it is up to you as the real estate agent to help the seller understand the ‘liquidity’ of the property and how it will impact the choices of property sale.
You can get other free tips and resources for real estate agents at http://www.commercial-realestate-training.com/
Do you want more commissions and listings? You simply have to be great at prospecting and cold calling. The rest of your business will follow.
Guess what? Most real estate agents and brokers are not sufficiently disciplined to do the right levels of prospecting on a daily basis. That is the most significant opportunity that exists in the property industry; you just have to be better than the rest at prospecting. Sure listing, negotiating, and closing are other important skills, but they will come as a natural by-product of prospecting.
Focus on cold calling and prospecting. So how do you do this? You set some prospecting rules and you start practice. The words ‘rules’ and ‘practice’ are another couple of problem words for many in the industry. Many struggle with doing both.
So let’s get away from the negative and presume you have the determination, the focus, and the drive to prospect for new business on a daily basis. Here is a ‘killer prospecting model’ that really works. The rest will be up to you. This model takes 3 hours a day, 5 days per week.
- There are no gaps and Saturdays and Sundays are the only days off in the prospecting process. That is the first rule; probably the most important.
- The second rule in the process is that you must prospect on the telephone in the morning because after that you will be distracted by other things and not stick to it. Without going deeply into it, there are established facts of personal performance in business that show the morning is the right time to do prospecting.
- Get away from setting any meetings in the morning. Tell the boss that you prospect at that time and that you would prefer to set meetings with him and anyone else in the afternoons. Even meetings with clients and prospects should not occur in the morning unless it is an absolute necessity. The only reason to break the rule is if the meeting is for an active deal that is closing.
- The 3 hours of prospecting each day in the office is done from the telephone. In commercial real estate you are predominantly dealing with business people and they generally will take your call if commercial real estate is an issue for them. If it is not an issue then you simply move on. Do not set up a meeting with someone who has no interest; remember that your time is precious.
- Drop the cold calling scripts and use your own words; that will be the way you will feel comfortable with the process. Use trigger words to flow the discussion, but do not use scripts as the listener will sense the processes and turn off.
- Know that it takes you about 20 minutes of cold calling every day to get the process into momentum. Once you are through the 20 minutes you must keep going and not stop for 2.5 hours. In that way you will make progress.
- Find a quiet place to make your calls so that you can focus without distraction. Your success in tele-prospecting depends on it.
- Research your call list the night before so you do not waste critical call time in research. This is critical to the call process.
- Create a series of simple forms to use in the call process so that you can capture the results later in the database. You must not stop the call momentum.
- Try to contact 10 new people on the telephone each day. If they are not in the office when you call then simply make a note to call back. You should be able to make 50 calls in 3 hours.
- Your only reason for calling prospects is to see if they have a need or an interest in commercial property. When you really understand that yourself, then the calls will be easier and the quality of the discussion will be higher.
- Have a great database to record everything. Use something that you are comfortable with. At the basic end of the database alternatives you can use Microsoft Outlook, or Access. Both are useful, low cost and user friendly. When you want to move to something more relevant to the property industry you can spend many hundreds dollars; personally I believe you can do very well with the basics providing you know how to use a computer well (in that you have no choice).
These are the rules that you need to set in your cold call prospecting. After you set the rules, you start the practice and you will need to do that for a couple of weeks until things are moving well. To your success in commercial real estate prospecting! You can get more detail on prospecting and cold calling in real estate here at http://www.commercial-realestate-training.com/
In commercial real estate you have to make many cold calls every day. The people that make the most income and take the best listings are the ones that make the calls. Everyone else, and that is the majority, are earning smaller commissions and getting less listings. You have a choice.
It is interesting that many salespeople avoid the cold calling process and rarely do it every day. There are some averages which show that you need to make about 100 calls to get one good listing. The calling process creates a funnel of opportunity that revolves every day. Without you making it happen, the business will not come. If only more salespeople had the discipline to make the calls.
Taking the 100 call number, I recommend that the salesperson has a system of calling that allows them to call about 50 people a day. It will take about 2 to 3 hours if you are organised. Understand this, you will not be able to get to 50 people on the telephone, in fact you will only get to about 15 to 18 people, however of those people you are likely to get 2 or 3 appointments. That is where the business starts to grow. It’s all up to you.
When you get good at the calling process, and that will take about 2 weeks of struggle, you will be converting more appointments, and that will lead to listing opportunity.
To make the calling process work for you there is a base plan which should be considered:
- Plan your calls the night before so that nothing holds you up in the 2 to 3 hours
- Start your calls at the same time every day regardless of any other pressures.
- For the first few weeks of making the cold calls, do some practice each morning before you leave for the office
- Do not use a fixed script, but use your own words.
- Find a private area with no distractions to make the calls
- Choose a simple group of words that guide your conversation
- Get used to people saying ‘no’, as there will be a lot of that
- Make the call simply to see if they have a need, not to push where there is no need
- Only make appointments with people that have an interest in what you are saying – your time is too precious to do otherwise
- Keep a tally of calls made and appointment converted as you proceed, the numbers will encourage you
- Businesses in the area are a great source of call targets and you can get those from the telephone book
So if you are new to commercial real estate and you want to generate market share the best way to do that is to talk to many people each day on the telephone and then later in face to face meetings. Use the technology that sits on your desk to its fullest capability. Good hunting.