There are plenty of opportunities for fees in commercial real estate today. To tap into those extra fees, your services need to be specialised and diverse. One client over time can offer you many different levels of commissions and listings.
Understand that a sale today can lead to a leasing opportunity in the future. A leasing opportunity in the future can lead to a property management appointment. A leasing opportunity today can also lead to a sales opportunity in the future. Stay in contact with all of your top clients with quality property.
Connecting with the right clients will help you with the growth of market share and the commission opportunity that you need. Work with the clients that require a comprehensive property service. It is then simply a matter of being the best solution for their property challenge. Consider the following questions:
- What can you do now to be comprehensively and professionally better than your competing agents?
- How well do you know your sales territory and the properties within?
- When was the last time that you asked for referral business?
- How well do you maintain relationships with your established clients and prospects?
- Is your database up to date or can it improve?
- Where will the next sales or leasing opportunity come from?
- What are the growth segments of your property market?
- Why should someone use your services as opposed to any other competing agent?
When you know the answers to these questions, you will understand the segments of the market that can offer you the best levels of opportunity and growth.
It takes a long time to convert a client and win a listing. Unfortunately many agents and brokers get to that point and then fall behind badly when it comes to servicing the listing. If you have taken the time to prospect and win the property or the client, it is just the start of the process. Creativity in marketing is then required to attract the levels of enquiry and inspection opportunities. Client feedback is also paramount to helping solve the property challenge.
So here are some tips to help you generate more fees as a broker or an agent:
- Your proposal or presentation should be structured around the best solution for the client and property. Understand those factors before you start. If you have structured your message accordingly and professionally, it will not be necessary to discount your fee or your marketing costs.
- Most clients like to work with an agent with dominant market share for the property type and the location. Get plenty of signboards into your sales patch and territory so you appear to be the ‘agent of choice’. The exclusive listing process will help you do that.
- Structure a ‘reward or bonus fee’ for a better price or rental outcome. If your industry standards and commissions allow, structure your commission fee base around the possibility of a better fee for a better outcome. Most clients will be happy to pay a greater commission for an improvement in price or rental. The same rule can apply to a quick sale or lease in a market that is saturated with other unsold or vacant listings.
- Understand the complexity of the client relationship. One client transaction can lead to another transaction over time. Package your fees for the diversity of the property and the client requirements. Know what your clients will need before they do.
- Provide specialised services that your competitors overlook. That can for example be in tenant mix analysis, property performance, leasing strategy, business planning the asset, renovation strategies, and tenant mix enhancement. You can also look at the complexity of project leasing and project sales for major new property developments.
So there are many alternatives for you to work on here. It is just a matter of understanding the client, the property market, and the opportunities that are available in both. Position yourself as the best agent to provide the quality services across all market segments.