In commercial real estate brokerage you need buyers to close on deals, but set some rules as to how you work with them. The qualifying process is really important.
Before going further into this topic, understand that quality listings and properties in your area will create better levels of enquiry from buyers looking for investment stock and also business premises. What will be the ideal target market for your listing? What will be the ‘selling points’ to attract your target market?
Most buyers will be looking for specific things in a property change and they are likely to be talking to a few agents at the same time. Qualify and select your buyers with due care and professionalism. Understand what they say, what they are looking for, and what they may not be telling you.
So here are some facts to understand and work with regards buyers of commercial and retail real estate:
- They are very likely to have talked to a few agents locally and inspected a number of properties. Find out what they have seen and with whom. They are likely to not be ‘open and honest’ on some of these things, so interpret what they say selectively.
- Deep questions are required on property type and property need. You should also find out where they are coming from in case there is another property exchange or disposal required.
- What do they know about the property market in your town or city? Are they familiar with market prices or rents as the case may be? You may need to give them some market comparable information to support your ideas and their understandings. If they are new to the area and coming from another city then this information will be critical.
- What is their budget and ideal timing of property change over? Both of these factors should be realistic. Drill down on the requirements so you can show them the right properties. When you are working with some corporate buyers of property, the lead time to relocation and purchase can be significant. You may need to help the buyers with the relocation strategies if they are coming from out of town.
- When and how will the property change be considered and approved? Make sure you are working with or close to the decision makers of the property transaction. This is a common problem to watch with buyers of property that are part of a larger business structure or corporation.
- What improvements are non-negotiable in any property selection? This will help narrow the field with listings to inspect. Don’t show them too many properties as that can confuse their thinking and slow any decisions. Show them the best properties for their situation and requirements.
You can create a ‘checklist’ to help you cover critical property issues and buyer requirements. Ask the right questions and in doing so show the buyer that you are more thorough than your competitors in finding the best property solution.