When you start working in a new area of a city or town in commercial real estate, there are facts from history that will help you find new clients and properties to list.
It all comes down to ‘history’. That is the history of the area and the transactions within that area.
So, how does this work, and how can you use it in your real estate business? It is a fact that property investors buy and sell a property for unique reasons that are special to each of them.
Still the facts are, the frequency of a property transaction is on average, happening beyond a period of four years for most property investors.
The Facts of Your Town or City
How many clients and prospects do you know now that purchased a property in your region about three years ago?
How does this four-year average arise? Evidence shows that the change in property values and the activity property market over a three- or four-year period will usually present new opportunities. That typically will give a property owner new reasons and opportunities to act on and enter other sales or purchase decisions.
Values can go up, and the potential of refinancing or more finance can also help or drive another property purchase.
Your Property Focus Set
If you are looking for new clients and or listings to work on, try a focus on the property owners that purchased properties in your location three years ago and beyond. That three-year cycle then puts you into the contact cycle with these new people so you can help them when they get to the next property change or upgrade.
What can you learn from this? Look up those people in your sales records for your local area. Start making contact.
Commercial real estate and property ownership or change are typically on a longer activity cycle than most other ‘investment channels’ such as the stock market.
Your Plan for New Clients
This idea is a potential basis of growth in brokerage. Implement the plan of contact to find listings. Think about these actions:
- Focusing on property types and by locations, find the sales transactions that happened over three years ago.
- Contact those people who now own those properties to see if they want to purchase and or sell again.
- The cycles of contact that you start with these people should be ongoing and typically every 60 to 90 days.
Simple strategies in commercial real estate always exist when you consider the history and the local area. Use the data from previous sales and a basis of contact to new people that could be preparing to act again in property sales and leasing.