When you are about to take on a new listing or undertake a listing presentation with a potential new client, it is critical that all the identifiable impacting factors relating to the property are found and looked at. That involves a full market analysis of the zone and the property types. Know the facts before you price the listing.
So where do you start? Look for the factors of occupancy and the elements of the property that could have an impact on the new listing. Seek the facts and understand all the specific facts before you make listing recommendations. When in any doubt, take your time and research things further. Don’t ‘jump’ into the listing without the facts and the figures that you need. (NB – you can get more listing ideas in Snapshot right here – its free)
Many brokers and agents are too eager to take on a new listing without due regard for market conditions and the property facts. Understand the property and the zone before the listing is accepted into your portfolio and promoted accordingly. An overpriced listing will waste a lot of your time and effort. Your time and your resources are precious and should be focused into exclusive listings that are realistically priced. Don’t make mistakes in any listing and property investigation.
Full Property Details
Here are some factors to investigate as part of the market analysis and listing process. You can add to the list based on the property type and the location if you believe other special factors apply:
- Location – there will be strengths and weaknesses that apply to the location and the precinct. Visit the location, and where possible, walk the streets in the precinct near the listing to observe any pressures or changes in other local businesses or properties. Understand how the access factors apply to the precinct and the location. Review the subject property and the surrounding location from the aspect of convenience and access.
- Zoning of the property – the property zone and precinct will have approvals and restrictions that apply to the listing and the building. Know that they are and how they could affect the sale or lease situation.
- Building compliance and regulations – understand the rules and regulations that apply to the property and specifically look for factors of risk and liability that impact the investment or property occupation. Ask the property owner questions on this, and investigate the local building authority for factors of compliance specific to the property.
- Occupancy analysis – this will be including the key issues from the leases, tenants, rents, vacancies and arrears. The property will have a ‘history’ that will help in property analysis. Look at the history and analyse the property as it is today. Review all the lease documentation before you talk about the tenant mix.
- Supply and demand – the property will be impacted by supply and demand in the precinct and with the property type, so there are some things to look at and investigate here. Are there other properties coming into the market that will impact demand or values?
- Prices and rents – these numbers will be property and precinct specific. Consider also the history of prices and rents over the last five years in that location. How have things changed? What are those numbers expected to do over time? Trends are easy to pick if you have the history of the area and a good awareness of supply and demand for the property type and the precinct.
- Improvements – assess the property specifically for the quality of the improvements, the services, and the amenities. Would you call the building modern? Is it the type of building that tenants or businesses want to occupy? How does the building compare to other local properties?
- Property running costs – this will be income and expenditure related. The property running costs should be compared to the averages for the area. Ensure that you are listing a property that compares favourably with others on the market for sale and or lease. If the property running costs are too high, then look for the reasons for that.
- Time on market – this will be the averages of time that apply to a listing being sold or leased locally. Market and economic sentiment will impact time on market, as will the time of year. Make your listing and marketing choices with due regard to the ‘time factors’.
- Marketing alternatives – when a property is to be sold or leased, the marketing processes will be critical to the momentum of enquiry. Create your plan of promotion based on the other properties in the location and the levels of enquiry seen locally and recently. Plan your promotion.
Perhaps you can add to this list based on the property type or location, but do take the time to get all the property and precinct facts before you list and promote the property. Do a full market analysis and list the property with great accuracy only when you have all the accurate detail.