Commercial Real Estate Brokerage – Resolving Withdrawn and Expired Listings
It is a fact that some listings will not sell or lease the first time they are put on the market. It is a common problem that can evolve from a number of issues. That being said, these listings do have some future opportunity for you as the local agent or broker if you choose to work the segment in the right way.
Let’s deal with the problems first. So why will these listings not move easily?
Try some of these factors for starters:
- Incorrectly priced
- Poorly marketed
- Unrealistic client or property owner
- Wrong time of year
- Inexperienced agent
- Low demand for local property
- Openly listed and overpriced
- Difficult negotiations
- Property improvements that are challenging
- Limited target market
- No target market
- Over supply of listed stock
- For Sale By Owner
Some of these things are resolvable. If the listing has resolvable strengths that you can see and appreciate, then it is worth tapping into the client’s motivations to see if you can help again with their property challenge, and to do so in the right way at the right time. You do not want to repeat the problems of the previous campaign.
Resolve and Remarket
Here are some ideas to help you re-market some of this old listing stock with greater levels of success:
- WHAT HAPPENED?: Determine why the property was unsuccessful in the first campaign. There are likely to be some obvious reasons for the failure of the previous property promotion and marketing effort. Resolve those challenges and weaknesses before you commence the new promotional effort. Perhaps the client will need to be educated about market conditions. Perhaps the property will need some presentational upgrade to improve things visually.
- WHAT’S GOING ON?: Understand the property market locally and the seasonal cycles that apply to sales and leasing. There will be better times of year where the property can be reintroduced to the market. Choose the time of year where the targeted audience of buyers and tenants are likely to be active.
- SET NEW MESSAGES: When you are to be repositioning a property for a second marketing campaign, it is a good idea to remove the property totally across all previous marketing efforts both online and offline. In other words remove the property from all promotional material and channels for a solid period of time. That will usually be for at least two months. When you bring the property back into the market, you want to do so with a fresh view and a fresh message.
- WHAT’S THE TARGETS?: Establish a new promotional effort that is matched to a defined target audience. Consider the property market as it is today and the fresh message that the property needs in the new promotion. Everything needs to be new. Upgrade the advertising copy, the headlines, the photographs, the targeted features, and the media spend. When marketing the property for the second time, convert some vendor paid marketing funds as part of the listing process. If the client is still serious about moving the property, then they should commit to a genuine amount of vendor paid marketing.
So the strategies will help you refocus the marketing efforts on withdrawn and expired listings. If the client is still motivated and realistic about market conditions, then there are some advantages for you in working the property and the segment.
You can get more commercial real estate brokerage tips and marketing ideas here in our eCourse ‘Snapshot’.
