In commercial real estate brokerage, the sale process is quite special. There is a limited amount of time to attract the required targeted buyers and to create the ‘churn’ of activity to get offers and negotiations underway. Prepare to make your sale processes successful and frequent. Time is ‘precious’ and momentum is necessary. (NB – you can get plenty of sale strategies in our Snapshot program right here – its free)
In saying all of that, there is a real difference in the way you should handle a property that is listed ‘openly’ versus a property listed ‘exclusively’. Your bias of action and focus should always be towards those listings that you have been given ‘exclusively’; controlled listings are critical to your business. Devote plenty of time and thought to your exclusive listings and your associated client base. Luck has nothing to do with the outcomes you seek as a broker or agent.
All your listing presentations should be biased towards exclusivity and listing control. The client needs to know the difference of approach that applies between those listing types, the property types, and the marketing processes. Put yourself comprehensively into the marketing process so the client can see that you are the critical part of achieving their success through the sale process. Show the client why your strategies and ideas are superior to those of your competitors.
Understand your listing numbers. It is far better to work on a limited number of exclusive listings than many open listings. Your time is precious, and your controlled listing stock will be the best way that you can build market share and commissions over time. Think about it; considerations should also be given to the complexity and size of the property to be released for sale. Information should be gathered and checked before the promotion of the property becomes public knowledge. Stage the property promotion.
So, you have many listings to work on from a sales perspective. Strategies are required to make that process work. The suggestion here is that there are specific things that you should do in preparing to make a sale. You can refine your listing approach using checklists and review processes; that will then help you with momentum.
Systems and Strategies
The strategies that evolve as part of the sale preparation process should focus on the client, the property, and the location. Current market conditions will also have something to do with the strategies that you operate under. Be aware of the changes and the current market conditions throughout the year so that your marketing and inspection processes maybe adjusted.
Here are some ideas to help you prepare strategically for the sale process in commercial real estate brokerage:
- LEGAL: Check out the title detail relating to the property and the client ownership structure. Look for the factors of legality and correctness. Many clients do not understand the legalities of taking a property to sale. Make sure that the property ownership structure is legally capable of selling the property. When in any doubt, ask more questions and seek legal counsel.
- DETAIL: Get copies of all supporting documentation relating to the property, the tenancy mix, the cash flows, and matters relating to building compliance. Review all the documentation before the sale process starts.
- PROPERTY: Review the property for the strengths and weaknesses that will have an impact or an enhancement to the sale process. The strengths of the property may feature in your marketing and inspection processes. The weaknesses may need to be resolved before the marketing process starts.
- BUYERS TARGETED: Determine the target market that should be focused on and into as part of the marketing process. The marketing campaign will need to be shaped into the target market locally and regionally. Understand how you can encourage people to make property enquiries, and inspect the listing.
- FUNDS: Seek vendor paid marketing funds to assist the sale process and the marketing momentum. Sufficient funds allow you to stage the promotional campaign across a period; most listings are intensely promoted for some 6 to 8 weeks. Interest and enquiry should be attracted and converted during that time.
- OTHER PROPERTIES: Check out the local area for competing listings, and adjust your approaches to marketing with due regard to the competitive pressures. Compare your property listing to the other current and available property listings in the location. Have you got a competitive edge that can be promoted through your marketing? What will you use as feature points in your marketing campaign?
- PROMOTE: Determine the best media channels to use as part of the promotional campaign. Consider the factors relating to online, offline, and direct marketing. Merge some channels of social media into your property marketing activities.
- AUTHORITY: Ensure that you have a valid appointment to act. Don’t start the sales and marketing process until you know that all matters of a sale are legally correct and agreed to. In the case where the property ownership may be a company structure or a partnership, make sure that you are talking to the decision makers behind a property ownership and all parties agree with the sales and marketing campaign.
So, there are plenty of things to do here as part of a commercial property sales marketing campaign. There are checks and balances to move through and review. Review all your systems and strategies to apply to the listing and marketing process.
Checklists will help you avoid errors and omissions, and some of those checklists will apply to different locations and property types. As part of preparing for the sale, ensure that you are taking notes and gathering all the relevant and essential documentation from the interested parties. Ensure that you understand your client’s instructions and their requirements as part of the sale.