The quality of your listing systems in commercial real estate brokerage will directly reflect in the momentum of marketing, negotiation, and closure in investment sales. Like it or not a commercial property is a complex form of investment.
At the time of listing you must get to the bottom of all current issues that could impact the property outcome for the client. That time spent at the front end of the property listing process will greatly help you achieve a positive outcome for the client. Some clients will cooperate with the supply of property information, and other clients may have limited knowledge of the key issues. Ask plenty of questions and take lots of notes.
Your Property Listing Systems?
What is your listing system like? Should you spend more time in listing a property exclusively than a property that is openly listed? The basic answer is yes. Whilst you always need to understand any property you have for sale in a comprehensive way, the exclusive listing process demands more time and effort from the agent. When you are the only agent working the property for a sale outcome, the chances of your success are a lot higher when compared to the competitive ‘open listing’ process.
So what does a good listing system look like? Try some of these ideas and merge them into your current listing processes:
- Property Ownership – Get to the core issue of just who owns the property and in what structure. You are likely to need supporting documentation to back up your findings.
- Title and Land Details – Get a copy of the property title and the land survey so you know what you are working with. As part of that process, look for any discrepancies and complex matters requiring investigation.
- Lease information and Tenancy Schedule – The lease and the tenancy schedule for the property should be checked against each other. They should also be checked against rental invoices and the tenants in occupancy.
- Boundaries and Surveys – Get out into the property and look for the boundaries. Compare them to the plans that you have available.
- Property Improvements – The existing buildings on the property should be checked for validity and occupancy requirements. Do they comply with current building codes? Any problems should be identified and dealt with before you go to market.
- Orders, Notices, and Charges – As the names suggest these are issue that apply to the property. They can also impact the buyer’s interest, so get to the bottom of any of these things and remove them as weaknesses before you start marketing the property.
- Energy, Heritage, and Other Special Circumstances – Look for the special factors that could impose extra costs or special activities in property promotion. Energy consumption is a direct tenant occupational cost. Some tenants are very sensitive to the energy supply systems in properties including emergency power and ‘off grid’ supply.
- Property Outgoings – The costs to run an investment property should be identified from accurate operational budgets and cost analysis. You can compare properties to get a good idea of what costs would be considered ‘standard’. That process will also involve a full rates and taxes review.
- Legal Issues – Are there any factors in the property that pose a legal threat or tenancy related hurdle? Explore the issues up front and get all the details in case they could upset the due diligence process prior to any contract or negotiation.
You can add to this list based on your location and property type. Get the facts and drive the deals on all quality properties.