In commercial and retail real estate agency today, there is generally an abundance of stock and not enough buyers or tenants. When it comes to presenting and listing your services to clients, you really do need to convey the correct terms and conditions of the market and the right solutions that will help the clients solve their property pain. Here are some tips from our Agents Newsletter.
Be a Relevant Agent
It really doesn’t matter how difficult the retail property market is, but it does matter how you approach the marketing, inspection, and negotiation process. These factors can be fed into your listing presentation so that the client understands your relevance as a top agent to help them through the difficult task of selling or leasing the property.
As part of your regular weekly team meetings, you should role play your listing presentation for the different property types over which you work. The prevailing market conditions and local area will also have some impact to your presentation.
What’s Your Listing Strategy?
Here is a strategy that you can merge into your presentation with property owners.
- From the outset, make sure that you are talking to the real decision makers when it comes to the particular listing. In some businesses, the decision makers can be hidden behind others.
- Check out all of the other competing properties in the local area. They will have some impact on your listing when it comes to marketing strategy, price, and or rental.
- Provide a method of sale or a method of lease that satisfies the current level of enquiry relative to the property type. This means that you should make particular recommendations to the clients that are clear and concise. Tell the client about the local levels of enquiry, and how you intend to refer that enquiry to the subject property.
- The best listing alternative today is an exclusive listing. It gives you control of the client, the listing, and the enquiry so that you can put together some reasonable momentum on the particular listed property. At the end of the day, the client simply wants the property to be sold or leased at a reasonable figure. The exclusive listing process can do this. Top agents will only list on an exclusive basis. Get away from open listings as soon as you can. In this market you simply have to control your stock and the exclusive listing process is the only way to do it.
- Give the client some alternatives of marketing that can be applied to the property listing. In most cases, three alternative marketing packages are recommended. The client will usually choose the one in the middle. Importantly, the marketing package should be designed to reach the target audience in a timely way to encourage inspections. If the property is of some quality, you will always get inspections and enquiries regardless of any market conditions. That being said, you should be satisfied that the rental or price that you are asking is in the realms of reality when it comes to the existing property market.
- In any role play situation for a property listing, you should be asking for the listing. The best time to close on the client is when you are in their presence and before they have had the opportunity to involve other agents in the property.
As logical as the role playing situations seems, many agents will avoid the process or overlook it. When you deliberately practice your listing presentation and pitch, you can improve your conversions of listings quickly and effectively. A quality listing that is a controlled listing will always bring you better enquiry. Over time at least 75% of your listings should be controlled.
You can get some more tips like this in our Real Estate Agents Newsletter.
The success of your commercial real estate office and you individually as a commercial real estate salesperson will have a lot to do with your prospecting plan. The prospecting plan is a particular process that is developed by each salesperson relative to their property type and local area. If you want to be successful in this industry, it is very wise to establish your plan as early as possible in your career.
It is notable that most salespeople in the industry are of an ordinary performance level. This then leaves a significant opportunity wide open for those that can move to the top of their industry through established prospecting activities and professional skills.
So let’s look at some prospecting rules that will help you build your market share.
- Clearly define the type of property that you are to specialize on. That property type should be comprehensively incorporated into all of your marketing efforts. When you work exclusively on a particular property type, it is easy to be seen as the local property expert. You will also achieve higher quality listings over time because of this relevant and comprehensive knowledge.
- It should be said that your specialist property type should be in significant abundance throughout your territory. You need to know that the property type churn will produce necessary sales and leasing opportunity as the case may be.
- Review the history of your area for property changeover and property leasing activity. How much commission has been generated by your territory over the last 12 months? How many sales have occurred in your area over the last 12 months? How much leasing activity has occurred in your area over the last 12 months? All of these questions should be answered so that you have a clear future in your property type and sales territory.
- Get to know your competitors and the listings. You will soon understand the difference between top agents and everyone else. When you have identified the top agents, study their business activities and their points of difference. Is there sufficient room for you in the same market with similar points of difference? Should you develop alternative points of difference, or work on different property types?
- Commercial real estate is an industry where personal branding is a significant part of your listing generation and commission opportunity. You will need to have a significant personal marketing plan implemented on a daily basis to encourage new clients towards you. That is the best way to attract property opportunity.
- Whilst you may work for a prominent local or regional commercial real estate agency, you will be the reason for any listing to be converted to a transaction. The industry is based on people and the knowledge and skills behind those people. Whilst your agency may attract some enquiry to you, it is your personal skills and knowledge that will convert the listing and drive the enquiry. On that basis, you should optimize and grow your specialized skill at every opportunity.
Prospecting in commercial real estate is a personal process, as we have mentioned above. When you truly understand that fact and develop the prospecting systems around you, the property market will open up for you in opportunity. This opportunity is always available in any economy and in any location.
The top agents of the industry are always prospecting for new clients and new opportunity. Your existing database and client list will eventually become tired and restrictive when it comes to commission opportunity. Always be on the lookout for new people and new properties. That’s what prospecting is all about. Over time you can build a significant commercial real estate business with fresh people in your prospecting model.