In commercial real estate today, the competition for business and market share will drive some desperation when it comes to listings. The fact of the matter is that desperation does not produce quality in the listings that you require.
When it comes to listing a property you should not do any of the following:
- Discount your commission
- Take on an ‘open listing’ at the clients request
- Reduce the advertising amount to be paid by the client
- Offer agency paid advertising
- List at the clients inflated price
Now I know that there are exceptions to the rule, but far too many agents will do many of these things just to get the listing. They then finish up with something that is harder to market and they then have little interest in property promotion.
The fact of the matter is that you must believe in your listings and your clients. That is why exclusive listings are really important. In commercial real estate agency 20 exclusive listings are worth far more to you than 50 open listings. You have no control on open listings.
When the client tries to force you to take on the listing on their terms, what do you do? How do you handle the circumstances? What would you say?
The basic logic is that you should have a set number of conditions that you apply to every listing that you bring into your agency. These are ‘must have’ conditions that you will require before you take on the client and the property.
Here is my list to help you:
- A firm and fair commission that reflects the amount of work that you will be putting into the property.
- The right method of sale or lease that you know is required to attract the right level of enquiry
- A good amount of vendor paid marketing funds that are paid to you in advance before the marketing is to be commencing.
- An exclusive agency that gives you the right amount of time to reach into the market and find potential buyers and tenants as the case may be.
- A committed vendor or client that knows that the marketing effort is to be focused and direct. They have prepared the property for promotion and marketing to help your efforts in advertising and direct contact of prospects.
When you have these things confirmed and supported by a legal and correct appointment to act as an agent, you have something to work with. You can devote real time to the promotion of the property.
The client wants results and it is up to you to show them how that will be done. Drive the listing forward with dedicated effort.