There are always a few challenges and hurdles to work through with commercial property sales. Think about it for a bit. Everything in the sales process is a definite ‘stage’ that requires action, strategy and momentum. Experience and strategy helps you in getting your sales appointments and listings resolved faster.
Front End Sales
Consider the ‘front-end’ of the process for starters:
- Sourcing the listing and or the client
- Property and precinct investigations
- Listing on a sole, exclusive, or open basis
- Target marketing selections
- Generating and taking enquiries
- Inspections of the property
- Negotiations with willing and qualified parties
There are many things to consider and action with these ‘stages’ of the sales process; your properties, your clients, and all your city precincts are cases in point. The good thing is that you can optimize all your results with a focus on systems and facts; that is where ‘strategy’ is a good thing in marketing a commercial property for sale.
Look at every stage of selling commercial property and consider how you can improve enquiries, conversions, and results. Isn’t that why clients engage our services?
Challenges of the Sale
So, the points mentioned earlier are the ‘front-end’ of selling commercial property. Intertwined with those facts you will have a variety of these things to work through and with:
- The timing of a promotional campaign – review the property for the best time to start the promotion of the sale. That investigation will involve the local area, the time of year, and the target market. There are some important choices to make here.
- Best methods of marketing and the best method of sale – each factor matches to the other. When you know the method of sale that best suits the property and the client, then choose the promotional process that taps into the target market and the location quite well.
- Fixing problems with the property before the sale – most properties have issues to address before going to sale, so look for them. Some of those problems are ‘cosmetic’, and others are more ‘performance’ based. There will be a timeline to fix those problems. That timeline will impact sale solutions.
- Property facts gathering – that can be with legal, physical, and operational elements of the property, the client, and the location. Add to that the cash flow and expenditure or outgoing investigations.
- Finance availability – finance for property purchases will change based on the location and the economy in the location. Bankers and lending groups change policy quite frequently so stay on track with the finance changes for the location and across your property specialities.
- Due diligence investigations – ensure that you have done all your property investigations before sale and marketing so that the due diligence process by a buyer of the property does not ‘derail’ the contract of sale.
- Other competing properties – know the other properties that are on the market locally, so that the comparisons that arise in any sale negotiation can be handled comprehensively
- Intentions of the parties will change – be aware of what your client’s position is in any sale promotion, and how much variation they can take in negotiation or marketing process. That will also be impacted by market conditions.
There are a good number of things to look at here with your sales strategy. Many of these things are ‘hurdles’ in the sales process and should be looked at before they become too large or unresolvable. Become the problem solver of commercial real estate sales.