Many commercial real estate clients will list their property with the agent that quotes the best potential price as part of the listing pitch. Whilst a higher price may be a way of capturing the attention and interest of the client, achieving the high price can be a lot more difficult for the agent. Overstating a price estimate is ethically wrong and can lead to a listing that remains on the property market for a long time. Ultimately the client becomes frustrated and the listing appointment comes to an end. Not a good way to do business!
Buyers determine the price, not the agent or the seller. A contract will be created through the offer and acceptance process; getting the buyer to make a reasonable offer is therefore the important starting point for negotiating a successful sale. The real value that an agent brings to the sale process is in finding the buyers that are prepared to make an offer and then getting them to do so. Build your listing pitch around that factor of attraction. Tell the seller how your method of ‘buyer identification’ is superior to the other agents in the market.
Commercial Real Estate Sales Marketing Planning
So how can you build the momentum in selling any property? Here are a few ideas:
- The Best Method of Sale – Choose the best method of sale that gives the momentum to the marketing process and builds urgency to progressing a deal between the parties. Putting a price on the property and then marketing it at that price is not normally the best way to attract offers and inspections. The auction method of sale or the tendering process will usually give more momentum to the marketing and sale promotion.
- Comprehensive Property Promotion – The promotion of property today is something that will greatly impact the level of inbound enquiry. Choose your methods of advertising and promotion with total regard for the target market. Mix and match your promotional efforts through traditional newspaper marketing but overlay a good degree of online and database marketing. Websites and your industry portals will create and sustain reasonable levels of property interest for a good period of time. Track the hits with your online marketing efforts so you know what properties are more attractive to buyers.
- Use the Telephone – Once the property promotion has started, get on the telephone to connect with all the people that you know and those that are in your database. They are already qualified so you have reasons to talk to them and they will most likely take your call.
- Database Coverage – A good database will hasten many marketing efforts and create inspections of the property directly and quickly. Any exclusive listing deserves plenty of outbound telephone calls from your database. Use each high quality listing as a reason to talk with many of your qualified prospects and local business people.
- Local Area Focus – Focus your marketing efforts into the area that you know. That will typically be in the suburbs, and across the town or city. Local property owners and business proprietors know the local area and have reasons to get involved with a new property that is offered for sale. In most cases a buyer of a commercial property will come from inside your local area. Get to know all of the right people and businesses that will have a reason to listen to you when fresh high quality listings come on the market.
A successful property sale is largely created by the efforts of the agent. Help the client understand that process and then show them how you will do it. In that way you will convert more listings of the better properties locally.