In commercial real estate brokerage, there are sales processes to define the team and then concentrate on. That focus will help the real estate business setting its momentum in moving ahead. Results, systems, and controls are big elements of listing marketing and commission conversions.
So, where can you start? The systems outlined below should be implemented at an individual level within all sales and leasing teams. These systems can help your business with traction and focus. They can help you get the best outcomes for your brokerage business over time.
Any weaknesses identified can be resolved, and the skills of an individual then are improved with training. The results with any listings can then be enhanced and time on the market can be shortened. So, there are some things to do here with sales teams.
This concept then becomes the ‘selling process’ for a commercial real estate brokerage, and particularly so with sales and leasing activity. Every element of the listing and marketing requirement for exclusive listings should be looked at in this way.
Listing Types and Choices
As a comparison, any open listings would not be looked at with the same level of marketing commitment and drive; there is no point in focusing on marketing and conversion of an open listing that you cannot control.
Here are the selling processes to work on in your real estate team:
- Prospecting for listings and clients – This is the ‘front end’ of the real estate business and the also the foundation of everything that is to follow. The listing stock is required, and there are ways to do that effectively and efficiently over time. Every broker or agent should have a ‘pipeline’ approach to new business that they implement every day. Some strategies work better than others, and the skills of the agent or broker should be considered when structuring a contact and pipeline process. A few different contact models are useful, but above all else, the ‘personal contact model’ is the best; that is with each agent or broker connecting with plenty of people personally. While cold calling or warm calling on the telephone is used to find new people, the ‘door knocking’ approach is best. Take business cards into the business community and look for those companies that are under occupancy change or pressure. That then is the ‘face to face’ priority of the industry. Get to meet plenty of people. Create conversations in that way.
- Presenting and pitching for new business – From the prospecting mentioned earlier, it is then critical to have a listing pitch procedure or method that is ‘honed’ for the property type and the outcomes required. Those outcomes would usually be exclusivity, marketing monies, the method of sale (or lease), and enquiry optimization. Prepare your listing approach for the end targets required.
- Documenting the listing – Accuracy in the listing process will always be necessary. Too many errors can slip through the funnel of client and prospect contact. Make sure that you have all the listing processes and property facts well understood and documented legally. When in any doubt, ask more questions. Don’t finalize a property listing without all the ‘elements’ of information ready and checked.
- Refining the marketing program – Take the property facts, the market conditions, and the elements of client focus so you can build a marketing program that is structured for results. Every marketing program should be specifically considered for the location, the competing listings, and the opportunities available. In refining the marketing program, you can help the client see the importance of choice and engagement with agents and brokers.
- Inspecting the premises – Understand the property and the asset for what it is and where it is located. Develop strategies for inspecting the premises given the strengths and the attributes of the building and its location. There will always be specific strategies to consider when showing a property to its fullest and best attributes.
- Negotiating – Given the facts of the property, the prevailing market conditions, and the priorities of the client, consider how the transaction should be negotiated and how the property should be taken to the market. There are different ways to sell or lease a commercial, industrial, or Retail Property today. There are choices to be made in the marketing process to optimize enquiry and to encourage negotiations.
- Closing and getting transaction finality – When a property negotiation has been completed, closing the transaction and documenting it effectively and legally is always important. Failure to do that will leave the brokerage and the agent open for litigation and commission disruption. It is worth remembering that a closed transaction still must be settled and finalized; there’s a process to optimize to get to a transaction to finalize. There can be a significant period between a sale or lease closure and settlement. That is why each broker and agent should have a system to follow through on or outstanding transactions and client situations.
So, all these things are specific selling processes to optimize across the agency and with each broker. As logical as the factors seem, it is remarkable how individual agents and brokers take shortcuts with all these stages with their listings. Improve your real estate business through a deliberate and direct focus on these stages of listing marketing and finalization.