The property market is quite competitive today as ever more commercial and retail properties come on the market for sale or lease. The reality of this market is that tenants and buyers can pick and choose from the available stock.
Real Estate Agents and Brokers are of high value in the marketing of property today; the database of qualified prospects they have on their books can shorten the time on market for the property owners they act for.
So there are plenty of properties for buyers to choose from in most locations and cities. The older buildings with outdated improvements and that are now in the redundant phase of asset performance, can be considered for redevelopment or refurbishment as the case may be. Cashed-up developers and property investors will choose their purchases based on profit potential, timing, and local demand.
This then says any property owner that is seeking to solve a property problem, should be realistic on price and marketing; they also need a good property agent to help them. The following rules should apply in the marketing of any property:
- Due regard should be given to the prices and rents established by comparable nearby properties. Buyers and tenants know what the local property market is doing and will usually seek a comparable bargain. It is the agent's job to assess this local area impact on the needs of the client to take their property to the market.
- Every property that is taken to the market today should be well marketed to a specific audience. That will involve vendor paid advertising and exclusive listings to enable the agent to focus on the right segment of qualified prospects. Open listings are a waste of time to all concerned. The client invariably thinks that they are not being served by the agent, and the agent knows that they should not waste time on a client that shows no real commitment to exclusively using the agent's services (certainly correct).
- The marketing campaign for the property should capture all types of relevant advertising media. The 'long-tail' effect of property marketing is more achievable today with internet based marketing than with the newspaper advertising that only has a short shelf life.
Given these facts, the marketing proposal put forward by the local real estate agent should capture the current issues and trends of the local area, and offer a clear strategy for the property owner to consider and approve. Here are some key topics for the proposal to cover:
- Statement of market conditions that can impact the sale or lease
- Features and weaknesses of the subject property together with any recommendations of things to be addressed as part of the property promotion
- Best method of sale or lease given the market conditions currently
- A comprehensive marketing plan that addresses the items 1 to 3 above
Far too many agents turn the proposal into a statement about themselves and their skills; the proposal is all about the property and the way to solve the client's problem. When you take this approach it makes it easier to win the new business or convert from your sales pitch.
If you want some more tips and ideas to help your commercial real estate agency and convert more opportunity into listings and commissions, you can get a free eBook of tips and tools at http://www.commercial-realestate-training.com
John Highman is an experienced Commercial Real Estate Agent, International Speaker, and Sales Coach.
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