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.
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.
When you are pitching for a listing in commercial real estate brokerage, consider the focus points of the client and the specific factors of the property itself. Then review the local market conditions. Your dialogue can evolve from those elements.
Develop your lines and ‘patter’ to engage the clients thinking. Avoid the jargon that we commonly use in the industry, and break things down into the core facts that really matter with the property. Simplicity tends to win more attention and closure on listing situations.
Give the Client a Clear Picture
Be specific and relative to the location and property type. Understand how you can add value to the listing process by specialising within a specific location and marketing the property specifically and directly to the right target audience.
In this audio program, John Highman talks about the ways you can direct the client’s thoughts in the listing pitch towards the things that matter so you are reducing the impact of any competing brokers.
When you pitch and present your brokerage services to a new client in commercial real estate, the connection and engagement process should be well considered before you get to the property meeting.
In simple terms you only have a short period of time to capture the interest of the client and move them into and across your property recommendations. Clarity is really critical to getting the client to see what your saying and why that is so important to their property situation or resolution.
So what can you do? It doesn’t matter if you are pitching in sales, leasing, or property management, the same rules apply. You should have an engagement strategy that moves a client into your ideas and property recommendations.
In this audio John Highman talks about that very process of pitching and presenting your services to a client.
In commercial real estate brokerage you only have a brief opportunity to grab the attention of a client and help them see why your property presentation is better than anything else that your competition may be recommending. You have to plan a perfect property presentation.
Let’s take for example a presentation relating to the sale of a prime investment property. You know that the property will sell and that there will be a lot of interest in and through the marketing campaign. Your main focus in marketing the property should then be a combination of the following:
Getting volumes of enquiry so you can build a real competition for buyers to make offers on the property
Convert plenty of inspections so that the momentum of the campaign grows to a critical point of finality as an auction, or close date for offers through a tender situation
Pull in all the potential people in the target market
Simple points of focus like these will help you build the perfect property presentation. When you get the ‘formula’ right, the client cannot fail to listen and carefully consider your ideas in a relevant way.
How Can You Pitch Your Ideas?
So what can you do here to shape and promote your presentation ideas? In the case of an investment property for sale the following strategies really work:
Restate the client’s situation – Tell the client what you understand to be their position and their targets. This first stage of the presentation will ensure that the client can see that you understand their timing, and the property challenge.
Explain how you see the property – When you explain the property in detail (including the improvements), you show the client that you really comprehend all the aspects of the sale situation that really matter.
Pick the advantages and strengths of the asset – Give the clear strengths as feature points that you can build on in any inspection. Tell the client how you will move people through the property and why that will be done.
Show time frames and stages – When you take the entire sales process into account you can split up the marketing and inspection process into critical stages. From that you can create a timeline. A timeline is a great ‘visual approach’ to getting the client to understand your property ideas and recommendations.
Answer the difficult questions – The client will have certain problems and issues that they think could impact the sale or the price. You can identify those issues in the earlier stages of the client contact, and then address those concerns in your property listing pitch.
In essence, these simple ideas are very effective in helping you gain the attention of the client to the potential of you marketing their property.