The process of qualifying commercial property sellers may seem unusual; however the process is quite relevant in today’s property market. In simple terms, you need to know that the seller is genuine and motivated in the sale process. There is no point in a commercial salesperson or realtor wasting time with an unrealistic seller that fails to listen to the recommendations made.
Inexperienced agents typically take on unrealistic sellers and list their property. The time wasting process here can be extreme; you need to know the seller and the property are correctly packaged for optimising the levels of enquiry in today’s market. Inflated prices do not produce enquiry, and unrealistic Sellers invariably do not negotiate easily.
Experienced agents will tell the seller about the local property market and where the particular property sits with regard to comparable nearby property and established prices. The correct choices can then be made to move ahead with the marketing campaign. The message here is you should not take on the listing that is unrealistic in price and promotional strategy; so let some other agent waste their time. When a property remains on the market unsold for a long period of time, it is primed for the taking by another agent at a reduced price.
The qualification process therefore includes some or all of the following:
- The method of sale chosen for the particular property needs to be appropriate in the local market. The right method of sale will optimise the enquiry and that is what you want. Today the property enquiry is far more selective and the sales usually take much more negotiation. On that basis the method of sale needs to be appropriate to optimise the enquiry.
- To market a property today, you really do need vendor paid advertising. This means that the client has to provide sufficient marketing funds to apply to a well-designed marketing process. The marketing alternative you give your clients can be provided in three alternative packages or strategies from which they can make a choice. Information is the key to helping them with that choice.
- Find out why the seller wants to sell the property and in what time frame. This information will have some impact on your method of sale and marketing recommendations.
- The method of listing a commercial or retail property today should be on an exclusive basis. It is the exclusive listing method process that allows the agent to devote the necessary time to property promotion, marketing, and inspections. Vendors that choose not to list exclusively are really not genuine in the commitment to the agency; they simply cannot therefore be trusted and negotiations become far more difficult if and when the property gets to that point.
- So the alternative to the exclusive listing and method of sale is to use the open listing process. This means that many agents can have a property listed at the same time. It is your choice if you find this an acceptable way of listing a particular property. Do not however spend too much time where it could later be proven to be wasted.
All of this information will help you take a property to the market with efficiency and greater success. Be prepared to walk away from a listing if the client is unrealistic or wants everything their way. Remember that in this market the clients need you more than you need them.