When it comes to selling or leasing commercial or retail real estate, some clients will lose interest in the marketing a promotional process after a few weeks. It is no secret that the property market is really tough in many areas at the moment. Clients can be put through a lot of stress and discomfort because of that.
Client relations should be encouraged and strengthened in times like this; a top agent will do that. Tell the client from the outset that the marketing and negotiation process is going to be longer than they expect. There are simply not the buyers and tenants around to take up all the properties that are available.
If your property market is saturated with commercial and retail listings it will manifest itself in various ways and something like this:
- Tenants are taking greater time to look at the property and when they do, it is likely that they will look at a few more properties with other agents before any decision is made.
- Buyers that can act in this market are fewer given the limited availability of money and limited finance from banks. When they find a property, the due diligence process will be extensive and the financier is going to be very selective as to if and when they should advance funds.
- Competing properties in the local area will be on the market for a long time and on that basis are being discounted frequently to attract more enquiry.
- Properties will be open listed with many agents, none of whom are really marketing the properties.
- Agents will ‘jump’ exclusive listings at any opportunity and particularly where the existing agent is underperforming or not creating the enquiry.
If the clients do not understand these facts, they will lose interest and soon be looking for another agent to help them.
Consider this question, ‘Why should the client list their property with you?’ Most agents give generic answers of little substance and relevance.
Can you give an answer that completely conveys the real points of difference that are relevant to the client in this market? Can you say something like the following?
- We have been canvassing all of the local businesses for the last 2 years and we know the ones that are looking to change premises soon. Your property suits some of those businesses.
- All of the local property investors are registered in our database for particular property types as they arise. When the right listing comes up we take the selected property investor to the property as part of a ‘private viewing’ that may move the property before it even hits the market publically.
Relevance is the key to winning listings in today’s property market. Top agents know how to be relevant and will drive better market share from that in any market and at any time.
If you want some more tips and ideas to help your commercial real estate agency and convert more opportunity into listings and commissions, you can get a free ebook of tips and tools at http://www.commercial-realestate-training.com
John Highman is an experienced Commercial Real Estate Agent, International Speaker, and Sales Coach.