In the commercial real estate industry, you will get plenty of pressure from your clients and prospects to reduce your commission or service fee. If you truly believe that your services are superior in your location and with your property types, then fee reduction is not an option.
Ask for the appropriate fee for services to be rendered. Talk about the value that you provide to the client and their property challenge, and then wait for an answer. Be prepared to walk away from a fee reduction request if it is unfair or too onerous.
Desperation is not a good look in commercial real estate nor should it be the basis of your commission or listing agreements. If you truly believe that you are offering a top-quality service, then ask for the fair fee, and stick to your request.
One thing should be remembered here when thinking about listing fees and commissions. The client needs your services to resolve their property challenge to get the best outcome achievable and to do so in a timely way. If you sell your services through those two points of focus, the conversion of the listing at a fair commission is quite achievable.
Who Do You Work For?
You do not want to work for clients that are unrealistic, or not aligned to the property market situation today. Local area investigations will show you and the client what the chances may be of getting property enquiry and inspections underway.
So, a focused listing approach and presentation process will help you achieve better outcomes with your clients and with your service commissions. Try these ideas for starters:
Show that you understand the facts. That then is those facts relating to the client and their property and its position in the location. Inspect the property with the client to discuss presentational issues, strategies, improvements, and tactics.
Define a clear target market. Every property will be suited to certain target markets. The more direct that you are in defining that fact will then help with client engagement and decision making.
Tell a few stories. Property stories always help with a client conversation and decisions required. Choose the stories that are best suited to the property type and the challenges faced by the client in today’s terms. Show that client that you understand the solutions required. Talk about how you will direct your efforts towards solutions.
Choose the best method of sale (or lease). There are different ways to approach the marketing of any property. Make your choices for the client and give them some alternatives to work with. It is then easier for the client to decide what they are doing and why they should act in a way as part of moving on your recommendations.
Give real strategy to your professional approach. Don’t be generic in your business approach to listing or selling a commercial property. The ‘common’ approach to marketing and negotiation should only apply to ‘open listings’.
Give timelines to the campaign and marketing process. There are many things to do in marketing a commercial, industrial, or retail property. Show the clients the stages of your approach and how they are so relevant to moving things forward. Put yourself in the equation of property marketing and negotiating.
Seek exclusivity for work to be undertaken, as that is the only way you can devote the required time to the client and their property. Show the client why your exclusive listing processes are superior in resolving their challenge today.
If you follow these rules, it helps you convert listings and achieve better commissions. Always document the sale or lease agreement comprehensively and legally, so you do not have to revisit the commission discussion again. Simply put, get into the marketing of the property and resolving the client’s property targets and obstacles in a timely way.
When it comes to the marketing of commercial real estate listings today, it pays to have some very specific goals and targets. This then helps you spend the marketing money effectively and specifically as part of the property promotion.
Here below are some listing tips from our eCourse.
The goal setting process also helps you see when the achieved results from the promotion are not as you would expect. You can then make adjustments during the campaign and potentially lift the specific listing results when it comes to inbound enquiry.
What are Your Targets in Listing?
Here are some realistic targets that should be considered as goals to be monitored and created as part of every exclusive listing promotion:
Target market reach – make sure that your campaign is matched to the target market and the media channels that they use or connect through. If your property is in any way special, you will need to undertake a specific target market assessment prior to the commencement of the campaign. As prime examples in this case, medical properties, specialized warehouses, specialized manufacturing, and redevelopment opportunities are all properties that require your promotional efforts reaching into a particular target market. Design your campaign accordingly. Track and measure the results that you get from your campaign so that adjustments can be made midterm to the promotion.
Understand the timing and spread of the campaign – you will only have a short opportunity at the time of campaign commencement to create plenty of churn and activity. The first few weeks of any property promotion will be the best weeks to attract fresh new enquiry and undertake the property inspections. Every exclusive listing marketing process should be heavily biased to the first three or four weeks of activity. During that time you can report to your client on enquiry and inspection feedback. The feedback will help you condition the client to the prevailing market conditions.
The enquiry rate – from the start of the promotional campaign monitor the volume and type of enquiries that you are attracting across the different media outlets and channels. Soon you will see where most of your marketing spend is more effective. That information is valuable when it comes to optimising property enquiry across your brokerage and for your specific listings and or clients. The information will also help you pitch for listings and convert exclusive campaigns including reasonable levels of vendor paid marketing. It is hard for a client to refute or debate the validity of actual enquiry facts from the market and from other property listings.
Inspection results – every property inspection will give you an opportunity to interact with qualified property purchasers or tenants. The comments made by those people will be a good indication of relevancy and value when it comes to any property listed and promoted. Collate and tabulate those inspection comments in a report to your client on a weekly basis.
The time on market – throughout every year there will be fluctuations and changes to the property market. That will have an impact on listing promotion, negotiation, and closure. The time on market can be impacted by a number of different things including pricing, promotion, competing properties, client conditioning, property features, and marketing spend. If you like, time on market is actually an equation to be carefully structured as part of the listing process. Shorten the time on market expectations for your listings by packaging each property in the best way for the best result. Help the client see the strategies required to move through the process in a timely way. Don’t let a listing become stale and obsolete in the property market today.
Considering all of these simple promotional facts, remember that the client you are servicing wants the best result at the best price, and in the best time frame. They don’t want their property or their property challenge to be an experiment in marketing; they don’t want to waste time or money (neither do you).
Provide specific help to your client so that they can be well conditioned for the prevailing market circumstances in your location. Help them make the right decisions.
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