Most commercial properties today will sell, even though the rate of enquiry is less in frequency from each property marketing campaign. It all comes down to the dedication of the agent to find the right buyers and tap into the right target market.
When sellers come to an agent and want to list and sell or rent their property, the choices they have may be the same as always such as the method of sale, marketing choices, time of promotion, and local area marketing, but the effort of the agent today has to be more focused within the listing period.
That being said, open listings with a number of agents are less effective today. Most open listings will stay on the market much longer. That is because:
· Open listings do not market the property intensely
· Enquiry is not driven by one skilful agent
· Agents spend most of their time working on the exclusive listings that they have on their books
· The seller really does not have any control on what is being said and done in promoting their open listed property
· Open listings are a 'hope and wait' process with little momentum from any agent. Any sale or lease is a product of luck.
· The marketing of open listings is really just a random process with little thought being applied to the target audience
It is easy to show a seller why an open listing is a waste of time. Some agents will not take open listings in this market because they know that the seller is not serious and cannot be committed to the marketing and inspection process. Negotiations on open listed properties are slower and harder to complete; the vendor of the property looks at the agent as an adversary in the sale process and generally makes the negotiation more difficult.
The 3 tips that should be taken into and used in every commercial property promotion today are:
- Vendor paid marketing is essential. This will tell you if the vendor is serious in selling their property. As to just how much money should be committed to the sale campaign really depends on the target market, but 1% of the sale price is a good starting point for vendor paid marketing funds.
- Exclusive property listing with one agency is critical to create the focus on property promotion, inspections, and negotiation. That agent can really drive the enquiry and the communications back to the client. Good communications will always help the negotiation when the time comes.
- The size and quality of the database that the agent has will have real impact on the property promotion. As part of that, the agent must know how to drill down on the database and extract the right people to promote the property to. Not enough agents today really use the database concept correctly or completely. In many cases the database is so out of date that it could even frustrate the sale process. That being said, a good database that is up to date and accurate will help the sale process greatly.
You can fast track any property promotion with these 3 basic things in place. Ultimately the client just wants to sell the property; the right agent will know how to do that in any market and at any time.