When you list a commercial property for sale or lease, it will be on the basis of an ‘open listing’ or an ‘exclusive listing’. There are some significant differences in the way that you handle the two listing types. Try this for the comparison:
- An ‘open listing’ is one that is listed with quite a few agents or brokers and you therefore have no control over. The client will do business with any agent that brings them a qualified buyer or tenant. There is no real trust in the client connection and you really have no idea if other agents are talking to the client at any time and with any offers.
- An ‘exclusive listing’ is one that is listed with your agency only. You have total control over the property listing, inspections, marketing, and negotiations. The client has committed to you on a legal and valid agency appointment for a definite period of time to market and move the listing to a final deal.
So which listing would you spend more time on? The simple answer is that the ‘exclusive listing’ process is the only way to go if you want to control and command your market as a top agent.
Why is it that an agent will take on an ‘open listing’? It is a ‘fall back’ strategy when you cannot get the client to agree to an exclusive listing. Yes, I know that some ‘open listings’ can also be converted to ‘exclusives’ if you service the client well and at a level where other agents are not performing. So that is where some choices come in. Personally I dislike and avoid ‘open listings’ given that the client cannot be trusted and you just do not know what is going on with them.
I want to make some very clear statements here.
- The only way you will build your market share and agency dominance is off the back of exclusive listings.
- The only way you will get more exclusive listings is by refining your skills, prospecting daily, and lifting your presentation skills to a top level.
To be a top agent you must show the market that you are worthy of that ‘brand’. You have to be so good that the clients and prospects of the market must chase you to list their property; they know that you are the ‘go to person’ to get the result that they need with their property and property type. Your property knowledge, skill and relevance all come into the equation.
If you want to rise to the top of the market, have a good look at your skills and relevance to the clients and prospects that you serve. Can you honestly say that you stand ‘head and shoulders’ above the other local property agents? If not, you have some work to do. Start practicing.