Post about "Real Estate"

Dispensing With The Key Competition When Listing Property

When meeting a property owner for the first time it is critical to understand the how and why factors as to what property they have and why they want to sell or lease it. The property is usually underperforming for the client in a number of ways and that will be the catalyst for change.

Find the ‘property pain’, and you find the reason to list. Listing a property for sale or lease is not simply a matter of taking down the information and going to work. Understanding the property owner’s position and the ‘pain’ factors that motivate them is at least 50% of the equation.

These key qualifying questions help you on the listing process. They help you know what the property owner is doing and why.

How long have they owned the property?

  • This will have impact on the price today. Most owners look at the differential in price from when they purchased the property as a factor in completing a sale. They want to make the most amount of money possible above what they paid for the commercial property.

Why did they acquire the property in the first place?

  • Every owner of property has a key reason as to why they bought a property. In many cases this original reason of purchase will be the same reason why they are selling today. The key benefit of the property to the owner is now not being satisfied.

How did they acquire the property originally?

  • Was it by private negotiation, auction, tender, or trade? It is likely that the original method of purchase will be a suitable method of sale today for the property owner. They will be comfortable in that method of sale having been through it once before. Of some importance today will be the suitability of the property to sell by that method. Only you can judge that fact.

Do they own other property and will that impact the sale of this one?

  • Certainly other property can be integrated into the performance of the property you are about to list. This is commonly the case when the owner runs a business from the site. Be sensitive to how each of the properties operates and the timing of any disposal.

Does the property owner know much about the sale and lease strategy of investment property today?

  • If they have owned the property for some time they may be unaware of the current trends in property marketing and disposal. The internet is now a major marketing tool for commercial real estate sales and leasing. The more traditional paper advertisements have less of a role to play in property marketing. It is a good idea to carry examples of property marketing with you for just this very reason.

What does the property owner know about current prices and rents?

  • Perhaps the key question for the property owner. If they have an inflated idea of prices and rents it is better to know that from the start. There is no point in taking on a property for sale or lease if the price or rent is so out of balance with the market. If you are like me, the thought of wasting time on an overpriced listing is not attractive.

Is it possible that the property owner knows more about property than you do?

  • This is a difficult situation for some newer real estate agents. When the property owner knows a lot about the industry and the property market it makes it more difficult to move them towards a decision. The normal arguments and discussions you make will have to be of solid reasoning and logic. When this becomes a challenge take your office manager with you to meet the client. This can diffuse the demands that the client can make on you in discussion.

As simple as these factors are, they are largely the factors that will impact the clients thinking at the time of listing. Real estate agents should adjust their presentation and proposal to suit. Go to the meeting prepared and the listing will likely be yours.