When it comes to negotiating or listing a property for sale or lease in commercial real estate, it is a fact that the information you keep will help you convince and convert parties to an agreement. In simple terms, to present the real facts of the market you do need an effective way of tracking the key trends and results.
I have put together a list here of some of the main factors to be tracked. Based on your town or city, you may have some other issues to add to the list within the property types and locations:
- Prices and rents- there will be differences between the listed prices and the results achieved from any sale or lease. In other words, the asking prices and rents will be different from the achieved result. Many times you will see that the owner of the property will judge their price or rental expectations from the advertised listings in the area and not necessarily the recommendations of the agent or broker. You will need to have further information to support your observations about successful transactions to convince the client of the real market conditions.
- Time on market – throughout the year you will see the time on market change considerably when it comes to a sale or lease. That will be driven by seasonal enquiry, local economic conditions, and the price relevant to the particular listing. For that reason you should track the time on market that applies to each listing and each category of property such as industrial, office, and retail. Understand the real reasons why some properties sell faster than others; the same can be said when it comes to leasing a property.
- Other listings – by tracking the other listings in the market you can show the client just how mistakes are made and advantages taken. A successful property transaction is usually the result of a carefully balanced equation of pricing, marketing, negotiating, inspecting, and shaping those factors around the property attributes. That is where the skills of an agent or broker are just so important. The skilful agent provides the strategy behind the successful property equation in sales and leasing.
- Tracking enquiries – when it comes to any listing that is taken to the market, enquiries should be tracked across the marketing campaign and through the different media channels used. Some methods of marketing will be far more successful than others. By tracking the numbers with every property marketing campaign you can clearly show the clients how they can improve property enquiry with directed effort and marketing focus.
- Website and Internet – the promotion of a property for sale or for lease on the Internet requires real strategy. Some websites and listing methods will be far more successful than others. The quality of the listing, the size of the campaign, the duration of the marketing process, and the category of the listing on the industry portals will have a lot to do with the number of hits that you achieve from every property listing. The client should be encouraged to spend vendor paid marketing funds on the right property listing strategy and the correct industry portal.
Taking all of these things in balance, it is easy to see how the information that you keep will help you convert the client to an accurate and direct decision. Help the client to avoid mistakes when it comes to the promotion of the property for sale or for lease in today’s market. As part of that process demand an exclusive listing in all respects.