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Commercial Agents – How to Negotiate with Sellers Today

Two Business men walking and talking
Agents - Negotiate with your sellers to get a fair market price to list the property at.

In this property market we come across many sellers of commercial property that just want too much money.  Here is an article from our Newsletter for Commercial Real Estate Agents.

The problems with sellers of commercial property today usually stem from all or some of these:

  1. They fail to recognise that the price of property today is different than when they purchased the property a few years ago.  In many cases the price of the property has fallen!
  2. They do not acknowledge the comparable property and market prices that are in the same area as their property today.
  3. They use an agent that has really no idea of how to market the property or condition the owner of the property to today’s property challenges

So how do you battle with these issues?  In one word it has to be professionally.  If the client wants to list their property for sale at an unrealistic price then why take on the listing?  Why would you waste your time on something that is overpriced and overrated?

Here’s a strategy that is useful for agents to use.

  • If the property is well priced then I would strive to get an exclusive listing and service the client very well for a period of 3 or 4 months.  If the property has not sold by that time, you would have to say that something is really wrong and it is better to take the property off the market for a while.  A key strategy of the exclusive listing process is Vendor Paid Advertising; ask for it as part of the listing process.
  • If the property is overpriced and the client is not receptive to realistic market trends and discussions, then I would offer to take an open listing only on the chance that something would come along that can be converted to a deal.  Understanding that an open listing is not taking much of my time, it is the client that needs to be prepared for the extended time on market.  If that is their wish then the strategy is OK.

It pays to be firm and direct with property owners in the listing process.  You are not a charity, you are a professional and your skills and time need to be protected on those properties that are packaged correctly for sale. Build your commercial real estate business the right way, and the listings and commissions will come to you more easily.   You can get more detail on our website at http://www.commercial-realestate-training.com/

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Lifting Productivity in Your Commercial Real Estate Team

Commercial Real Estate Sales Team
You must solve problems of productivity in the commercial real estate team the right way and do it fast.

There is no doubt that a commercial real estate office is a busy place with agents coming and going at all times of day.  The situation gets worse the more salespeople that you have on your team.  It should be said that productive salespeople should not be in the office much during the day, but out in their territory.  The only time that they should come into the office is when they have some calls to make, or paper work to complete.  They should be in the office for only 2 hours per day maximum.

The office principal or team leader that wants the salespeople in the office most of the time is really not giving enough trust to the team to get on with the job. 

Sure, if you have some members of the team that are not producing then they are likely to be wasting the business day and not doing the right things.   In that case you need to know where those sales team members are and what they are up to.  But do you really want them in the office?  Wouldn’t it be better for them to get out and about and meet the people?  Couldn’t you get them to give you a diary update of movements at the end of the day or week that would satisfy your questions?

Poorly performing salespeople that cannot account for their movements should be dismissed as part of an ongoing business cleansing process every 3 months or so.  There are ways to manage out the underperformers.  A constant recruiting process goes hand in hand with running a real estate business.

Salespeople are intelligent and will make their own choices.  If their choices do not match your business model then they should go somewhere else and be helped to do so.  Do not let any underperformers become the ‘elephant’ in the sales team that is frustrating everyone else and taking the majority of your focus.  You and the team do not need the stress of the issue.

Why would you want to tolerate a member of the team that is not producing and is destabilising everyone else?  Sure, they may be providing some income and that fact may hold back your decision to sack or dismiss them, but eventually the ‘elephant’ issue will become so frustrating that it will have impact on your personal performance as team leader.  Remove on any ‘elephant’ issues quickly.  Get on with supporting and helping your good people achieve.

Here are facts that apply to running salespeople in a team:

  • Great salespeople like flexibility and support to get on with the job and produce commissions
  • Great salespeople will produce business their way if you give them the flexibility and the trust to do the business
  • Great salespeople know that they are responsible for the results that they achieve and will get on with the process if you give them the leverage to do so.

If you do not trust any or all of the members of the sales team then you either have the wrong people, inexperienced people, or your need to adjust your business practices.  Trust is really important when it comes to optimising listings and commission results from the real estate team.

Whilst you want the team to perform, the sales team need to see and feel the trust between you and them.  If they know and feel that you do not trust them, they will break the rules anyway and eventually leave the business to move somewhere else where they think they will be ‘trusted’.

Don’t make the sales office a ‘roller coaster’ of emotion for the sales team.  If you are the team leader, give them stability, trust, and direction in the office.  Give them the real flexibility and trust to do a good job and achieve.  Manage yourself first and foremost.

The team needs the leverage and opportunity to be out in the market place most of every working day.   Track their performances by KPI’s and if they do not soon show their results in the figures, then you have the wrong people.  You cannot micro manage salespeople for too long; they will take too much of your time and soon revolt and move on.  Give your top performers flexibility and trust above everything else.

Check out some more tips for commercial real estate teams at http://www.commercial-realestate-training.com/

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How to Build a Commercial Real Estate Sales Team

Selling or Leasing Commercial Office Buildings
You need great people to handle commercial buildings like these. Choose your sales team well.

When it comes to commercial property sales and leasing, it is really important to have a great sales team behind you as the agency principal.  Finding the right people or getting the best performance from every person can be very difficult.

It needs to be said that out of every 10 salespeople there are on average only 2 that are really very good at what they do.  Everyone else is rated in some variation of ‘average’.  To be ‘very good’ I mean the following:

  • The consistency to prospect for new business every day no matter what is on the agenda
  • Knowing how to negotiate at all levels with all types of landlords, property owners, investors, business leaders, and tenants
  • To pitch and present commercial property services in ways that really match the client or the market
  • To have a comprehensive market awareness and how to build opportunity from that
  • To understand how to close and document any type of sales or leasing agreement for all property types
  • To list and sell or lease at better than the industry average and to have a shorter time on market factor in closing sales or leases
  • To know how to target market commercial property to capture the best levels of enquiry locally
  • To dominate the local property market by area and property type
  • To close on exclusive listings and vendor paid advertising each and every time
  • To be the agent of choice for the local property investors and business leaders
  • To be excellent managers of their own time on a daily basis.

It’s a challenging list for many salespeople and agents.

There is a choice here and it comes down to each and every salesperson that you may employ.  Do they have the personal discipline to improve themselves and make their mark in the local property market?

My ‘cut’ on this is that as agent principals we have to be very careful in the employment of new people.  The poor selection of staff costs tens of thousands of dollars and hundreds of man hours.

I once had something to do with a large agency where the principal would only employ new members of staff for the sales team if they passed the test on a Psyche Sales Analysis.  The criteria on the analysis were centred on ‘sales’ and ‘negotiation’ skills.  In hindsight the business was very successful and remains so.  Any person that did not pass the ‘analysis’ would not be employed.  The right character and drive had to exist in the salesperson before they would be considered for employment.

Can you train existing salespeople to improve and grow their personal skills in commercial real estate?  Yes you can.

Should salespeople be open to learning and change to improve their market share and performance?  Yes they should.

How long should you tolerate average salespeople that fail to improve and grow their skills?  Not long.

If you want some more ideas on commercial real estate agency sales and leasing, you can get that at our parent website http://www.commercial-realestate-training.com/

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Commercial Property Agents – Some Personal Marketing Strategies for Today

How to prospect for new commercial real estate listingsSome property owners are sensitive to agents promoting themselves, although the reality of the situation is that commercial agents and salespeople have to be well known to be successful and dominate market share.

When you think about it the agents that dominate the market are the most desirable for clients to use and market their property through.  Enquiry is everything when it comes to selling or leasing commercial property.  The agents that are well known are the most likely to have a quality database of good contacts and qualified prospects.

Clients do not want to market their property through some unknown agent.  That is why and how you can show the client that any request for lower fees or commissions is not a part of the agent selection.  If they want to really sell or lease their property fast and obtain the best result then they need the agent that dominates the local area.  Commissions and fees are secondary to that choice.

If the client wants to choose an agent that offers the lowest sale costs and minimal marketing, then let them.  They are not the client that you need; let them waste their own time with the other lesser skilled agents with no or low market share.

To market yourself as a real estate agent specialising in commercial real estate, adopt some of the following ideas into your efforts and prospecting processes:

  1. Get your name on lots of signboards in your territory.  Importantly the signboards should be on quality local properties that create enquiry.
  2. Send letters to all the larger property investors, builders, developers, and business leaders in your area.  As part of that process you will need to make follow up calls so see if you can create some meetings.
  3. Start a personal blog on the internet talking about the properties in your local area.  This helps you with personal profile and will help the search engines rank you higher as the expert for the local area.  To do this you can use the popular blogging platforms such as www.blogger.com or www.wordpress.com
  4. Write and lodge articles on the main internet articles sites such as www.ezinearticles.com or www.articlesbase.com to show that you know a lot about the commercial property type and the local area.
  5. Cold call people on a daily basis to arrange meetings with qualified people that have an interest in local property activity.
  6. Speak at industry events or for community groups about property trends in your local area.  They are always looking for good speakers that know about the local area.
  7. Build a database so you can keep in contact with the right people in the property community.

As you continue to market yourself comprehensively through your local area, you will find that leads and opportunities evolve from the most unexpected sources; this will only happen when you market yourself.

You can get more free tips for commercial real estate agents and realtors at our website http://www.commercial-realestate-training.com/

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Every Day In Commercial Real Estate Should Not Be Wasted

If you have or are commencing a career in commercial real estate, you have to get consistent results in one form or another. Results can be in listings, closed deals, sales, leasing, property management appointments, and the list goes on. On that basis you cannot waste a day. Every day has to be planned. It is up to you.

So what goes on out there in the real world? Some if not most salespeople just take every day as it comes. They start work at about 9am and they stop work around 5pm. In between those hours stuff just happens. They have no plan, they have no system, and they do so many different things that consistency is non-existent. On that basis they do not give themselves a fair chance of success.

So what does this random process produce? The answer is poor quality open listings, average property enquiry, and not many deals in sales or leasing.

Low commissions will not make you wealthy. There are enough costs in this property game to drain most of your hard earned money inside 12 months. Do not waste time; if you have chosen this industry as your road to financial freedom, then you had better work to a plan and system. When things are not working, you adjust your actions and focus; that’s the rule.

If you really want to get somewhere in commercial real estate the facts are clear and have been set in stone by those high achievers in the industry.

  • Prospect every day to a consistent plan of streets and property type
  • Get to know lots of property people and business leaders
  • Create your own database that is accurate and up to date
  • Understand that you are the only person that can make your career happen
  • The results that you get are nothing to do with the market, the boss, or the office that you work for
  • Improve all your skills through practice on a personal basis (i.e. prospecting, cold calling, negotiating, presenting, pitching)

Life gets very hard if you do not follow the rules. When you do follow the rules, then things change quickly for the better; you have the keys.

If you want some more tips for commercial real estate agents and salespeople then visit our website at http://www.commercial-realestate-training.com/