In commercial real estate today, the frequency of undertaking a negotiation on a property matter is high, and the number of issues to understand as part of that are many.
In addition, the property market is changing, and plenty of investors are looking for new places to spend money. As an agent, are you aligned to the active opportunities out there, but more importantly, are you doing something about it?
Many agents are negotiating daily on the listing, marketing, sale, or lease of a property. Therefore, it directly follows that every agent should be improving their negotiation skills where possible in an ongoing way, given the increasing and improving property market circumstances.
What are the situations of a property or client that you are about to work on today? Are you going deep enough in your preparations and research?
Every client and property situation takes a reasonable degree of thought and planning. First, you must get to the real motivations of the client and their property. Ask yourself these questions:
- What is the target market, and where is it located?
- When will the client want a result with their property?
- What does a positive impact on the sale or lease look like for the client?
- Is the client comprehensively motivated to move ahead with their property?
- How marketable is the property today, and what will be needed for that?
- What are the strengths and weaknesses of the property to consider?
- Where are the competing properties, and how much ‘diversion’ do they create?
- What recommendations and strategies can you provide to the client?
These questions are pretty ‘deep’ in the amount of detail to be considered and checked. For example, are you prepared to meet a client and talk about their property requirement or change? Are you ready to help them, and how will that be done? Only these questions above and specific research will help you get prepared for that.
Reaching An Agreement
There is no point in being the same as every other agent in commercial real estate today. When you are preparing to meet with the client and talk about the property marketing alternatives, strategies and recommendations are needed. The best commercial real estate agents do that all the time, which helps them get more results with their listings. It is all about being ‘prepared for the negotiation’.
Every listing is thereby a negotiation event for an agent. Then, there are the stages of a property listing, which involve discussion, diplomacy, and reaching an agreement.
Top agents are always prepared for that approach. Finally, complete listings are achieved through preparation, presentation, explanation, and dialogue.
Here are some ideas to help you improve your approach to negotiation. These facts below can help you in achieving a positive listing or transaction outcome with your client. They are the proven things in commercial real estate brokerage to consider and work on.
Strategies and skills for leasing premises to corporate tenants today.
Real Estate Diplomacy
What is the strategy here? Through personal practice and self-improvement using these ideas, most of your property listings and deal negotiations will get a lot easier.
- Know the Desired Outcome – Clarity on the property outcome will help you improve your research and investigations for your client and their property. What will a positive property outcome look and feel like for the client and you? Will there be some parity in your real estate recommendations around that?
- Alignment – This is the process of ensuring that what you say and present to the client about their property is in complete alignment with requirements, trends, and pressures. Every client will have real estate conditions to investigate before you make your recommendations. In some situations, the client won’t be open, honest, and frank with you, so your questions must be well-considered and explored. Track the answers you get and ‘read between the lines’.
- Better Words and Phrases – As you handle different property situations in listing or bargaining, you will start to understand the terms and phrases that give you leverage. You can use those communications in helping people know where they are in the transaction and how you can help them move ahead to a positive result. Of course, you can always practice words and phrases in your weekly role-playing in commercial brokerage. Consider the property market circumstances and role play your responses and discussions around the common problems and questions that are out there today in the property market in your town or city.
- Timing and Tactics – Most clients and third parties to a sale or lease transaction will have pressures and priorities when it comes to completing a property deal. Getting to the facts around that usually involves not just questioning but also planning. It is not just a matter of getting a listing, but a listing that fits the client’s priorities and their property.
- Documentation Ready – You never really know when a person is ready to agree, sign up, or make an offer. On that basis, ensure that you have all your documentation accurately prepared and ready to use. Make it simple to get an agreement on paper in legal form. Verbal agreements are not worth the paper they are written on.
So, the ‘art of negotiation’ in commercial real estate sales, leasing, or property management is centred on agent preparation, knowing the facts, and understanding the client and the local property market.
If you are ready to improve your real estate business, listings, and conversions, these items will help you move ahead.
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