We, as agents, can always improve our negotiation skills for sales and leasing situations. The property market is always changing, and every listing will require special elements of negotiation. I am sure you can remember a challenging property listing or negotiation that was difficult to get to a result.
What happens in the ‘real world’ of real estate today? Some negotiations don’t reach a negotiation, or the parties can extend discussions for some time and ultimately not reach an agreement. As agents, always be prepared for the variables with market facts and feedback systems for your client(s).
As a special note and as part of negotiating any transaction, always make notes from a discussion with a client or prospect. You never know when you must rely on your notes as proof of progress or agreement. Support that process with follow-up email confirmation of any discussion or agreement.
Every listing and sale situation in commercial real estate will be unique due to the client’s requirements, the attractiveness of the property, the elements of the property market, and any offers made by any buyers.
As a result, a client may approach you to list and sell their property. What is your plan? As a result, you should evaluate any property for potential listing using those initial four factors or criteria. Consider the property’s sales opportunities and develop a marketing and promotion strategy.
Here are some factors that can help your property marketing and negotiations.
1. Target Market Defined
Set a buyer target market for the property. This will then assist you in designing the advertising copy and building the campaign for maximum coverage.
Create a few different marketing campaigns to meet various budgets and timelines while allowing for the best method of sale. When it comes to marketing and the sales timeline, the client will then have a few options.
2. Knowing the Buyer Motivations
Determine some buyer motivations and goals you believe the subject property could satisfy based on the previous point. In your marketing advertisements, include keywords that speak to the buyer’s motivations or needs.
Any property promotion should be matched to buyer segments. If necessary, create a few different advertisements to address various target audiences.
3. Competing Properties
How many other properties are you up against? What differences or advantages do your current property listings offer buyers?
The answer usually includes the improvement, location, highest and best use, or property investment performance categories. Examine the property thoroughly to gain a firm understanding of those factors.
4. Best Method of Sale
The best method of sale with a time frame is always a good choice. This could include a sale with a set completion date, such as expressions of interest or tender.
Buyers must act within a specific time frame, and sellers know when offers will be received. A timed campaign requires approximately six weeks of marketing.
5. The Right Price Range
Set a price range with the client you can work with. Setting that price range requires market evidence.
Finally, you want to position the property’s value to buyers in today’s terms. The client’s expectations must align with the market evidence you present.
That negotiation strategy is used at the ‘beginning’ of the listing process.
With all these factors, you can place the property listing on the market and generate a lot of interest.
Distribute the message to those you’ve identified as buyers and placed in buyer segments. Connect with plenty of buyers every day and you will soon find situations where you can help with property listings or future transactions.