The best agents in commercial real estate know how to communicate effectively and control their transactions from start to finish. They do not lose control of the deal momentum. They stay with their listings and negotiation positions to the very end. Those focus points are quite important.
Things will change, and momentum will shift in any sale or lease, so expect that. Understanding the momentum of the parties and their negotiation targets will help you effectively convert and control the transaction. Set your rules to all the communication processes across listings, inspections, and negotiations.
Comprehensive Communication with Listing Control
Stay with the transaction and the involved people from the very beginning.
Here are some ideas to help with that transaction control:
Know who your client is in the transaction, and don’t lose that awareness as the elements of the deal move and change. The client is the person that needs your help and will be the one that is paying the commission at the point of success.
Make sure your appointment to act in the sale or property transaction is accurately compiled and legally correct. You don’t want any disagreements about commission at a later time.
Get full property detail and title ownership correctly compiled for the transaction and the negotiations that may follow. Be prepared for questions and negotiation elements between the parties.
Follow the client’s instructions to completion. Keep the client fully briefed as matters shift and change. Information helps with negotiations.
Take plenty of notes as the transaction evolves. Most property negotiations are complex, and the elements of offers, discussions, and agreements will vary. Your notes are critical to transaction control. Every meeting, telephone discussion, or direct instruction should be documented.
If you need some ‘market awareness’ to help shape the thoughts of your client or the negotiating party, then gather plenty of comparable evidence from other local properties and transactions. That evidence should be statistical and visual, as well as verbal. Verbal comments alone don’t count much when it comes to client or prospect conditioning. Help your client or the other party to the transaction understand the elements of the local property market and recent prices or rents.
Most parties to a property sale or lease want to get some ‘saving’ as a final element of ‘closure’ on a negotiation. What is the best alternative to no agreement for each of the parties? They will be ‘holding out’ for their position and advantages, and somewhere in those facts will be a potential agreement. Know the negotiation ‘variables’ for each party and then position the negotiation around them.
Personal marketing for a top agent is a required process. It covers promotions and engagement across some different channels. A top agent will be using all available marketing elements to build their business. That will, for example, be websites, editorials, articles, social media, databases, telephone calls, and meetings. That is how they can build a solid marketing profile as an industry expert. The process of personal marketing never stops for a top agent. Get involved in promoting yourself and your skills locally. Engage with your target market.
When the final transaction documentation takes shape, understand the facts and capture the elements of the deal. Know how all matters should be documented; do so with accuracy and timeliness. All documentation should be served and prepared with full regard to local property laws and the instructions of the client.
With these things, you can control a property transaction most effectively from start to finish.
Communicate through your listing and property transactions with accuracy and timeliness. That will help in creating ‘closure’. Commissions are then easier to convert. That is how top agents do things.
Commercial investment sales is a special part of the property market. The rewards can be high in commissions providing you have sufficient listings, market share and qualified enquiries.
I also like to insist on ‘exclusivity’ as part of the property listing process. In this video I explain why that is important if you are to tap into the investment sales opportunities in your town or city.
See some ideas on Video about how Brokers can establish themselves in that lucrative segment of the industry.
In commercial real estate agency today, it is essential that we take all necessary steps to understand the potential of the property transaction and the client. A complete and comprehensive understanding will help you when it comes to a successful outcome for both you and the client.
This then says that you should really take the time to know the key facts that relate to the particular property situation and the requirements of the client. Here are some questions to help with that process:
Define the property from a legal perspective so that any listing and negotiation process can be correctly implemented and documented. Copies of supporting documentation, titles, owner representations, deeds, and conversations will be central to the accuracy of the listing. Look for any missing documentation or confusing circumstances. Resolve any of these challenging issues as part of the listing process. Review all of the property ownership documentation prior to any marketing campaign commencing.
Many properties will have extended issues to investigate. They could relate to rights of way, easements, encumbrances, orders or notices. The leases on the property may also have an impact on any sale or property investment situation. This then says that you must be accurate and detailed in the property listing process. Any errors made in documenting the listing can come back to ‘haunt you’ later during the negotiation or due diligence process. Learn how to interpret property documentation, leases, and factors that relate to the tenancy mix.
The local property planning process will have impact on building usage, improvements, tenant occupancy, future developments, and capital growth. Take the time to understand the local property development plans as they apply in your region and for any particular listing. Look for any changes in the development plan that could have an impact on the property in the future.
If you review the history of the area, you will see certain trends that relate to prices and rentals. You will also see factors that have impact on marketing, listing, negotiations, and time on market. Stay ahead of the current trends in property activity and the history of prices and rentals as they apply for each property type.
Every client or prospect will have factors of focus when it comes to property ownership and portfolio development. Some clients will own a number of properties or seek to do so over time. This then says that some clients can be very valuable from an ongoing business perspective for a real estate agent. In saying this, the cycle of activity in commercial real estate is relatively long. It can be many months if not years before a client is ready to take the next step in their property investment and ownership plan. You need to stay with the client for the long term, nurturing the relationship wherever possible with relevant and real information.
A client or a property investigation can be quite complex. Look for the potential that the client or a property can offer you as real estate agent. Position yourself for ongoing service and support to the client. The business, new listings, and commissions will soon be easier to attract.
In this commercial real estate market, the competition is fierce and the quality of enquiry coming back to you is selective. That being said, you should never ‘wing’ your presentations and inspections of properties.
You can do far too much damage to your chances of winning the deal or the listing. You can also send out the wrong message when it comes to your skills and relevance to the client or the prospect that you are presenting to.
What’s going on?
This property market is significantly competitive. Many of the agents you are up against will choose to use discounts and other enticements to influence the listing or the decision of the client.
On that basis your presentations need to be carefully planned and relevant to the solution that the client requires. That is why you cannot ‘wing it’ when it comes to your presentations.
Most clients today will initially be influenced by statements such as the following:
Low marketing costs
Availability of immediate property inspections
Open vs. exclusive listings
To help with the entire sales pitch and presentation process you can specifically discount all of these distractions providing you plan your presentation for the property and the client. Best results will be obtained when you completely understand the focus of the client and the challenges that are troubling them.
Set up your Checklist Strategy
Here is a checklist that you can apply to a planned sales pitch and presentation process. Into this model you can feed elements of the local property market and the particular property.
STRENGTHS AND WEAKNESSES: Define or restate to the client the challenges that you know they are facing. Clarity is important here so that they can see you fully understand their opinions and concerns. Generally they will be focusing on the expected outcome of price or rental, and the time required to achieve a satisfactory outcome. Part of that process will also involve the money required to market the property in the best way possible. It should be said that vendor paid marketing is the norm and not the exception. Always ask for a reasonable amount of vendor paid marketing.
COMPETITION: Be quite clear to the client when it comes to the competing properties in the local area and the achieved prices and rentals of similar properties over the last 12 months. Market evidence is a powerful tool if you use it correctly.
GET THE FACTS: A detailed inspection of the property prior to your sales presentation will allow you to build on the features of the property that you know will help you convert enquiries to potential sales or leases. Show the client that you really understand the factors of the property that will help convert a positive result.
SHOW THE STAGES: Prepare a timeline to the process of listing, marketing, inspecting, and negotiating. The timeline should be a visual process incorporated into your proposal documentation. You can use a Gantt graph for this process. One simple graph is far more powerful than five or six pages of your proposal document. Strategy is everything in this tough property market. Show the client that you really understand the right strategy for the property and can implement it conveniently and efficiently.
PICTURES: Take plenty of digital photographs in and around the property prior to the final sales presentation. Those digital photographs can be automatically scrolled on your laptop computer whilst you talk about the property and the solutions that will fit the client. It is remarkable how much positive attention and client focus these photographs will provide to your presentation.
A good sales pitch or presentation to list a property takes about 1 hour. Many clients will try to compare your presentation to other competing agents. Providing you have comprehensively covered these five items above, the client will find it very hard to overlook the strategies that you are providing.