Different Methods Of Selling Your Commercial Property

The information we provide you below will assist you in understanding as to what it takes to adopt a particular method so that you can finalize a method most suitable to you.

You should appoint only one agent

You can enter into exclusive agreement with just one property investing agent. The benefit here in this type of arrangement is that the agent will work with more dedication and focus to locate genuine buyers for your property at possibly best price. You may also have to spend less of your money and time in marketing and advertising for your commercial real estate sale.

Appointment of one agent but with a Multi-List Agreement

Here, the agent you appoint will be working with several other agents in the market for selling your property but cost to you remain the same as in the above discussed method. The main difference here is that agent you appointed in the first place shares the commission he will get from you with the other agents in the field who help him in securing the buyer for your commercial property

Selling the Commercial Property by an Auction

In this procedure there is no set commission to be paid to the agent. There is obviously a time limit for auction and this creates a time bound competitive environment for the real estate agent. Here the agent works even harder and you earn more profit in less of time.

Appointment of many real estate agents

In this method, you usually rope in many real estate agents to execute the sale. Buy you need to pay commission to only that agent who introduces you to the purchaser of you property.

Selling the commercial property on your own

Here you can decide to sell your commercial real estate by yourself in order to save on the commission you usually would pay to the real estate agent. However it is not easy as you will have to handle advertising and marketing for searching the prospective buyers. Above all you need to have sound knowledge of all legal formalities required for property transfer.

I am not in the favor of this method and would not recommend it as I firmly believe that your main goal is to be a real estate investor, so you should act in a smarter way.

Hence, as we see, there are many methods to sell your commercial real estate. Appointment of an agent is safe and the easiest way to achieve the results and it is always nice to go with just one agent.

Commercial Real Estate Agent Prospecting Facts and Strategies

When you work as a commercial real estate agent or broker, it is essential that you develop and implement a prospecting program to generate new business leads. It is a personal process and it is not something that you can or should delegate.

I am amused sometimes when I hear that an agent has paid considerable money to a marketing company to ‘cold call’ their entire sales territory or market segment looking for leads and prospects to serve. Delegating the prospecting process to a marketing company or another ‘unskilled person’ is a waste of time and money. Commercial real estate is an industry built around personal relationships and trust; a marketing company or employed canvasser cannot offer that level of communication or service.

So why would a real estate agent employ such a ‘marketing firm’ to make prospecting calls? The answer in most cases is glaringly obvious; the agent doesn’t have the skill or the discipline for the prospecting process to be successful.

If you want to win the new business, then you will need to do it yourself. Yes, it takes time to get results and you will need to develop some new skills, but discipline will help you get to the results that you are seeking.

One thing should be said here; commercial real estate brokerage is tremendously rewarding for the sales people that can work hard and to a system or plan. Looking for leads and opportunities is part of the process or game. It’s a personal thing and it can’t be delegated.

Here are some way’s to find new business, better property listings, and good clients:

  • Redundant Properties – Some properties will move to a level of redundancy due to age, deterioration, change of zoning, or lack of tenants. When this happens it is time to move to the next phase of the property ‘lifecycle’. A good real estate agent can see the signs early and work closely with a property owner as they start to deal with the issue of investment change.
  • Vacant Land – As a city expands or suburbs change, vacant land will be rezoned for new development. Keep ahead of this opportunity by monitoring the planning and development applications at your local planning approvals office. Get copies of the public minutes of the planning committee meetings.
  • Old Listings – Some listings don’t sell or lease at the first attempt. What you can do here is withdraw the property from the market today and then revisit the property marketing effort a few months later in another and perhaps different marketing approach. Refreshing a listing is a valuable business process.
  • Open Listings – The best way to sell or lease a property is through an exclusive listing process. Open listings are very much a process of luck; most open listings stay on the market for a very long time and on average are far less successful when compared to the dedicated marketing efforts of an exclusive listing. Revisit old open listings to see if they can be optimised for a fresh marketing effort.
  • Larger Businesses – Local businesses are involved in property either as tenants or as owner occupiers. Business owners will need help with property from time to time. The best way to tap into that opportunity is through direct and ongoing contact. Cold call every business in your town or city and speak to them regularly about property needs and changes.
  • Surrounding Other Listings – When a competing agent puts a property on the market, you can use that listing as a reason to talk to all adjacent and nearby business and property owners. One property listing can be the catalyst to talk to others to see if they would like to compete or do something themselves.
  • Street Canvass – On a street by street basis, systematically move through your sales territory and research all property owners. Eventually you will create a good list of owners for your database. Ongoing contact will allow you to build valuable client relationships and the levels of trust that help grow commissions and listings.
  • Cold Calling – The telephone remains the most effective business tool that we have. Direct calls handled in a professional way will help you reach out to new people. Selectively researching the property owners and business people in your area will support the cold calling process.

A simple list like this will give you an abundance of property leads and opportunities. The secret to making things work for you is in doing it yourself.

Ten (10) Reasons to Work With a Commercial Buyer’s Agent

Looking to purchase commercial real estate for your business or as an investment? The following are ten (10) reasons to strongly consider using a Commercial Real Estate Agent to represent your interests.

10. Provides a manager for the buying process.

A good Commercial Real Estate Agent will keep your property closing on track. For example – What is the status of the title commitment? Are there any questions or concerns with regard to the title commitment? Has the survey been ordered and completed? When is my feasibility period over? When does my earnest money go “hard”? Is the financing in place? Is an appraisal required and has it been completed? Have any necessary inspections been ordered and are they complete? Has an attorney reviewed the purchase contract? Have all of the closing documents been reviewed?

9. Referrals for experts who can assist with the property purchase.

Commercial Agents know other real estate professionals that can provide their expertise to the property purchase process. Professionals such as attorneys that specialize in real estate, title companies, surveyors, engineers, architects, CPA’s, insurance companies, building / property inspectors, environmental consultants, contractors, appraisers, etc.

8. Assist with due diligence.

As a part of the property purchase process, an experienced Agent can assist the Buyer in making sure that the appropriate items are researched to make sure that the property works for the Buyer’s needs. Due diligence is the pre purchase effort made to discover, and analyze information about the property under contract. Agents can assist the Buyer with obtaining the necessary documents and provide a checklist of these items including information regarding zoning, jurisdictional requirements, floodplain, easements, covenants, conditions and restrictions, utilities, etc.

7. Identify and assist with evaluating property conditions.

Commercial Agents can assist Buyers with identifying the most important items to be considered as a part of the purchase and evaluation process including a look at:

* Location

* Physical condition

* Allowable uses

* Limitations on interior / exterior additions or renovations

* Adequacy of access and parking

* Opportunity for expansion or leasing excess space

6. Experience from working with other Buyers

Based upon past experience, Agents can recommend other considerations to the Buyer such as – “Consider purchasing additional square footage which provides your business room to grow and until the space is needed the extra space can be leased and provide help with paying the monthly bills”.

5. Allows you to spend time with your business.

Let a Commercial Agent spend their time finding you property which allows you to spend time conducting your business. Focus on your expertise and let an Agent assist you by focusing on theirs. Time is too precious a commodity to be spent driving around looking for property.

4. Price and term negotiation expertise.

There is not another business professional with the experience and expertise that a Commercial Agent has to assist with purchase price and contract negotiations. Issues such as – What is a reasonable and fair price for the property? Is this a good buy? What terms and conditions should be in the contract to make sure that my interests are protected? Should I get some amount of inspection and feasibility time as a part of my contract for purchase so that I can better study the property and confirm that it meets my needs?

3. The cost to the Buyer is zero, zip, nada.

The Seller pays the Buyer’s Agent’s commission through a commission agreement between the two parties. The full cost is borne by the Seller.

2. Local Market Expertise

No one is going to know the local commercial real estate market as well as a Commercial Agent. The Listing Agent isn’t going to tell you if his/her property is listed above the market rate and only an experienced Agent can advise you with regard to the location making sense for your particular type of business.

1. Buyer’s needs differ from those of the Seller and they need representation to protect their own unique interests

The Seller or Owner will be represented by a Listing Broker and this Broker’s fiduciary responsibility is to the Seller. The Texas Real Estate Commission’s (TREC) “Information about Brokerage Services” states that “the Broker who lists the property for sale or lease is the Owner’s Agent”. It further states that, “a listing broker can assist the Buyers but does not represent the Buyer and must place the interests of the Owner first”. Finally it notes that “the Buyer should not tell the Owner’s Agent anything the Buyer would not want the Owner to know because an Owner’s Agent must disclose to the owner any material information known to the Agent. This is not a good situation for a Buyer to be in. Sellers have representation from their Listing Agents, Buyers need the same from a Commercial Buyer’s Agent.