In commercial real estate sales, there should be a ‘perfect’ method of sale for every property. Finding and selecting that method of sale is a critical issue.
With the property market under some pressure, the method of sale should be selected to optimise the enquiry and generate the sale that all parties are seeking. The suggestion is that not all modes of selling will suit every property. The right choices have to be made. The process is quite a balance if you are to take all the required factors of the property market into account. Know your property market and what is happening in it today.
Best Methods of Sale Need These Elements
Here are some ideas to help you with the best method of selling and moving that property in today’s challenging market.
- The principal target in promoting a property for sale today is to optimise the enquiry from the marketing campaign. What sale method will bring in that enquiry quickly and effectively? Can you use other local properties as evidence in making a choice?
- What target audience do you want to attract to the property? This will have a lot to do with the marketing frequency, media chosen, and the amount of money to be spent on marketing.
- What are the features and improvements in the property that will help the sale process? As part of that consideration, make sure that all problems in the property are sorted out and rectified prior to taking the property to the market. Take plenty of notes when interviewing the client on this. It is remarkable just how many clients want to hide a few things from the sale process. In the long run, the problems come to light prior to settlement and can destabilise the entire settlement. If you can see that the property has issues, deal with them prior to the starting of marketing.
- What is the enquiry like at the moment for the given property? Do you have people on your database now that could be approached to inspect the property in the early stages of marketing?
- What is the ideal timing of the sale? This will have some impact on the method to be adopted in marketing, inspecting, and negotiation.
- How much money can the client commit to the sale promotion process? Choosing the right marketing tools will be part of the target marketing established earlier.
- Most clients want a timely settlement. As to what ‘timely’ means to the client you will need to find out. The settlement process may need to incorporate some form of due diligence, so be prepared for all the time factors that the property presents.
As you can see, there are some key decisions to be made in the sale process of the average commercial or retail investment property to be taken to the market for sale. Consider all the issues and make the right choices.