In your local commercial real estate market, you will likely know a lot of agents that are your competitors. Some will be reasonably successful and others will be quite random in efforts and results.
The good news is that in most property markets, about 75% of your real estate agent competitors are quite ordinary, and the remaining 25% are already in or heading towards the ‘top agent’ category. You have a choice; you can be like everyone else or you can rise to the top in a steady and direct fashion.
The realities of the property market
In saying all of this, you do see some real estate agents work too long in property markets that are very unrewarding or slow; a ‘dead horse’ is a ‘dead horse’ if you know what I mean, and the attempted ‘resuscitation of the beast’ may not be worthwhile.
Staying in a property market that offers little opportunity or change is not a good thing, so look around and make sure that you are in a reasonable market location. Keep a close eye on just what is happening in your area with business viability, tenant movement, property sales, and new developments. If you need to change your market then do it, and get on with building your profile in a new location. If your market is ‘marginal’, it is best to look at the alternative locations and growth that is available elsewhere.
What does the future hold?
So let’s say that you are located in a market that is vibrant and has a future for you. Successful agents are usually ‘dominant agents’ in one way or another. The clients and prospects are well aware of those top agents and direct all inquiries to them. So what is a ‘dominant agent’? Try some of these:
- They have an abundance of ‘high quality’ listings that attract and direct more enquiries their way.
- They work predominantly ‘exclusive listings’ so that they can control the clients, property inspections, marketing activities, and negotiations.
- Signboard presence throughout the region is significant and strong.
- Their client contact and prospect base is significant in size and up to date. It is remarkable just how uncommon it is to see a database that is up to date and accurate. Most salespeople struggle with the fine detail when it comes to capturing the contact information in their market. That in itself is a great opportunity for those agents that can get organised.
- The trust levels established between the real estate agent and their prospects is high. Our industry is built around relationships. Establishing relationships should be a daily event for you.
- Length of deal cycle can be a few years or a few months; it really depends on the people that you know and the property type.
- Referrals should be sought when it comes to any good deal or transaction that you have completed. Ask the question to see if your client or prospect knows of other people that you can help. It is a lot easier to do business on the basis of a referral.
Repeat business in commercial real estate agency will occur if you have established the right outcomes for your clients and prospects. I go back to the comment on the length of the ‘deal cycle’. Work the ‘cycle’ and the property type. That is why you need a ‘niche’ focus in commercial real estate.