There are several mistakes commercial real estate agents make when first starting their careers. The most common of these mistakes would be Qualifying The Client. It is important in every agent’s career that they learn to maximize their time in order to be productive and efficient. One way to do this is by qualifying the client’s needs and motivation. Unseasoned agents tend to forgo qualifying the client prior to listing the property, and end up placing themselves in poor situation that ultimately affect their ability to consummate transactions. If they had followed the simples probing questions that we have outlined below, these issues would have never become a factor in the sale.
• Why Did You Buy The Property?
• Why Are You Selling?
• What Price Do You Want?
• What Are You Going To Do With The Proceeds Of The Sale?
• What Are The Loan Terms And Can You Place New Financing On The Property?
• Are You The Decision maker, and Are You Able To Sign A Listing Agreement?
Once the commercial agent has asked the above series of probing questions they will be able to ascertain the client’s motivation behind marketing their asset.
Prior to any 1st meeting with perspective clients in regards to the listing of their commercial asset, it is important for every agent to secure the following data.
• Current rent Roll
• Prior Two Years Operating Statements
• YTD Operating Statements
• Loan Coupon – Impounds For taxes, Insurance, & Reserves.
By securing the above mentioned financial information, this will not only allow the commercial real estate agent to have a clear understanding as to how the asset has performed in the past, and how it performs today, but in addition it shows the agent that the seller is serious about selling his or her commercial property, hence “Qualifying The Client”. Once the agent has completed and comprehensive analysis of the asset he or she is ready to schedule the listing presentation.
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