In commercial real estate today, it is easy to get tied up in many different property issues and requirements. One of the most common problems I see is when a new agent is ‘chasing around’ the market to solve the property requests of a tenant or property buyer. After a lot of effort the agent finds a few properties and then quotes them, only to find that their ‘customer’ has been talking to a number of agents at the same time and has satisfied needs elsewhere.
There is a ‘golden rule’ to commercial real estate brokerage that should never be forgotten. It goes something like this:
‘Focus 90 % of your efforts on growing your exclusive listing stock and particularly so on quality listings. In that way the buyers and the tenants in the market must come to you for enquiry and inspections.’
It’s a simple rule, and yet so many agents get diverted on random tenant and buyer requirements. Sure, you can capture the property requirements of those people into your database, but don’t spend a huge amount of time researching the local area and chasing the listings to solve those enquiries.
The Golden Rule of Real Estate Brokerage
If you haven’t got the listing stock to solve the person’s needs, then don’t spend the time looking for the ideal property; your time is precious. There is one exception to the rule, and that is when the tenant or the buyer has given you as appointment to act; in other words they are your client exclusively for a period of time and they will pay your commission. When that situation exists you can spend the required time researching the ideal property.
Consider the realities of the property market today:
- There are lots of random buyers and tenants to talk to, regardless of the property market conditions.
- A quality listing that you hold exclusively will generate a lot of ‘high value’ property enquiry that can be qualified and tracked.
- Most enquiries you take across the telephone will be untested and will have to be qualified comprehensively.
- Some people simply cannot afford the property that they are asking you to find.
- The person that you are talking to may not be the decision maker.
- The person making the property enquiry will have spoken to other agents locally so don’t think that you are the only person working them.
The greater the number of clients and prospects that you know or connect with, the more complex and challenging it is to stay on track and build the right new business focus. If you want to get anywhere in the industry you must consider how you control your time management and personal focus.