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Exclusive Listing Tips for Commercial Realtors and Agents

 

commercial real estate agent thinking with hands joined
Exclusive listings are always better listing stock

 

In commercial real estate, there is a lot of difference between the servicing requirements behind exclusive listings versus open listings.  Any open listing situation is virtually an experiment on the part of the client and they will have minimal commitment to you as the salesperson or agent helping them.  The client will generally be listening to many agents and trusting none.

So it is the exclusive listings that will bring us better quality stock and trusting clients.  That being said, it is important that we give our clients reasons to choose the exclusive listing method of sale or lease.  As part of the sales presentation or pitch process, you should have some solid reasons to recommend an exclusive listing process with your agency. Why are you better than other agents?

Many agents will choose or recommend the exclusive listing method to the client, and then make some fairly generic statements regards the reasons to choose an exclusive listing process with their agency.  Just about every experienced property investor has heard a variation of the following:

  • We know the local area very well.
  • We have sold or leased a lot of property recently.
  • We have been in the area a long time.
  • We are the best agent in the local area to sell or lease this property.
  • We have the property knowledge to do the job for you.
  • We have good people in your agency that will move the property for you.
  • We have relationships with the other agencies across the country and they will also market your property.
  • We will market the property and our cost.
  • We will fully target your requirements of price range and timing.
  • We will lower the commission because you are a good client.
  • I will keep you fully informed.
  • We are the best agency to sell this property for you.

None of this will make an impact on an experienced property owner or business proprietor.  The listing decision will be made on your relevance to help them and the confidence that you give them.

It is quite disturbing when you look at this list to understand how generically similar a lot of agents and salespeople are when they do their sales pitch.  Top agents will go a lot further than the generic sales pitch approach.  Top agents will drill down into the matters that really count regards the property and its position in the local area.  They will also come up with very specific strategies to market, inspect, and negotiate the single listing.  Clients really do know when they are dealing with top agents.

So here are some tips to help you service your exclusive listing clients.

  1. Tell them how you will be marketing the property and show them some solid examples of that process.  Give them some choices in the marketing approach whilst still making your recommendations.
  2. Take the client to the property and walk them through the inspection process as you see it, explaining how you will build on the features of the property and the improvements.
  3. In each week of the exclusive listing marketing campaign, you will need to be connecting with the client with a updates regards inspections and enquiry.  The client should be spoken to at least every two days throughout the entire listing agency period.  If nothing has occurred from any part of the planned marketing activity, it is still important that the client knows that.  Lack of information will turn them against you and make any future negotiations difficult.
  4. When an inspection has occurred with the property, direct feedback should be given to the client.  This third party feedback will be valuable in helping you condition the client to the prevailing market conditions.

Clients are always important to a commercial real estate agent.  In times of a slower property market, is imperative that we provide high levels of interaction and service at all times.  In this way you will achieve better results with all of your listings, and the chance for referral business at a later time.

Need more help to get exclusive listings in commercial real estate?  You can get them in our bulletin.

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Commercial Realtors – Marketing Proposals that Impress Clients and Prospects

business man and woman looking at laptop
Make every proposal a top document with plenty of client focus.

In commercial real estate you will be doing proposals for your clients and prospects on a regular basis.  You would think that being asked to do a proposal is a good thing; in some ways it is, although many a prospect will ask you for a proposal simply to get rid of you.  The hard truth of the matter is that many a prospect is going to use your proposal as a reason to choose another agent to sell or lease their property.  Here are some tips from our Bulletin this week.

If a prospective client asks you for a proposal, and you are meeting with them when they ask the question, respond by saying something like this:

‘Why would you want that?  Have I not been clear and helpful in the discussion here with you today?  What is it that you need more information on?’

Top agents know that the best time to sign up the client is ‘now’; not at some later time when ‘they have had time to think about it’.

So the request for a proposal is actually a strategic way of not making a decision on the spot.  What are the chances of agreeing to your proposal later when you give it to them?  Probably it is no better than 20% in most cases.

If you do decide to create a proposal for the client, do so understanding that the client is genuine in the request and that you will not be wasting your time.  A good proposal to sell or lease commercial real estate will include some or all of the following:

  1. A clear statement of the clients requirements to sell or lease the property
  2. A description of the property or the tenancy so that there is no misunderstanding in what is intended and what property it applies to.
  3. A summary of other properties in the local area that are regarded as competing with the listed property.  You will need to include a statement that describes the prices and rentals of those other properties.
  4. A description of the local property market as it exists today, taking into account the factors of supply and demand.
  5. The factors that will make the property relevant to the target market in the local area.
  6. A marketing brief as to how the property should be taken to the target market.  You will also need to supply samples of advertising and content that will apply to the property as you know it.
  7. Expectations of price or rental given the prevailing market conditions.
  8. A resume of issues that should be attended to before the property is taken to the market
  9. A visual strategy to the process of moving forward.  That can be a Pert or Gantt model that summarises the sale or lease process in stages

The list can be expanded subject to the prevailing market conditions and the property type.  If you are going to do a proposal for the prospective client, then make sure it is a good one.  First impressions are everything.  Get some more tips in our Bulletin.