The nature of commercial real estate and says that it will create many property proposals and marketing proposals. An essential rule of thumb is that you should only make a proposal on properties that you want to market and that are owned by clients who are genuine in the listing process. You can spend a lot of time preparing proposals for clients who are not well qualified.
It is a fact that many clients will seek proposals from various agents just to justify their preference for a particular agent. Their decision was made even before they called you.
If the client asks you for a property sales proposal, rate the request with great focus and only proceed on the basis that the request is genuine. Your property proposal should not be created simply to justify the selection of another agent in the sales process.
The property proposal you create can be for a variety of marketing situations, such as leasing, selling, or managing property. Property types will also be different, thus dictating unique documentation and recommendations.
So let’s take a look at some of the key parts of the sales proposition you could build.
- An executive summary should always appear at the front of the document and highlight on one or two pages the key aspects of your recommendations. It is the executive summary that will sell the rest of the document. Many clients won’t get past the executive summary unless the draw points are clear.
- The explanation and observation of current trends in the real estate market are essential. Tell them what’s going on in the market right now so the client is fully informed of competing properties in the region and prevailing economic factors.
- Ample property details should always be given. This shows the client that you fully understand his property and what he is about to sell. It also allows you to show your knowledge of the type of property and its characteristics that make the property more salable.
- You should always summarize the activity of the potential buyer or sourcing from. The reality is that you know the real estate market better than anyone. Tell the customer exactly who or what the target market is. Tell them how you are going to tap into that target market.
- Sales methods will always vary. Choose the right method of sale that suits the market and the property. Not all sales methods work in all situations. Some agents choose the auction method of sale frequently, although this method does not always work in a restricted market or on a special or unique property where buyers are few. Make clear recommendations regarding sales methods so the customer can understand where you are coming from in the sales method.
- The probable selling price or range will be of interest to the client. Final price recommendations will be based on your knowledge of the market and other recent sales trends. If the property is very unique, it will be more difficult to identify and in such circumstances it may be wise to move towards a market-driven method of sale. This method of sale is usually expressions of interest, auctions or bids.
- An exclusive agency contract is essential in any real estate development. It is the only way to maintain control of marketing. Open property listings are essentially a waste of time, although they are very common in industrial property sales. It is your choice if you want an open list. Better businesses will be built in the long run on the basis of exclusive agencies over which you have full control during the marketing campaign. Exclusive agencies generally extend for at least three to four months in commercial real estate. The nature of investment properties requires lengthy campaigns in most situations.
- Why should I use “Your agency”? Give the customer a real reason to use it, and don’t base it on discounted commissions or free advertising. Your customers must be genuine in the sales process and be motivated by real elements of value. You should be the best agent to provide this and thus give them the reasons why.
- The Clientele of “Your Agency” will be of some interest to the client. Demonstrate that you have had experience in other real estate developments of a similar type. Provide testimonials from other customers. Provide success stories from other types of properties.
- “The sales team of your agency will be relevant to the marketing document. The client must know who will be in charge of promoting their property and what their skill level is. The person applied to the sales process must have real experience or, alternatively, being tagged with another member of the office so she can bring that experience to the table.
- The timing of the sale should be clearly stated as a statement strategy. Not all properties will sell at any time. This is certainly the case with a commercial property.
- Advertising costs and marketing strategy must be clearly defined. As part of the proposal process, the client approves those costs and the strategy before acting on the property. Get the money for that paid marketing budget before any advertising begins.
- Selling fees are always important. Sales fees or commissions should be competitive but realistic. If the client is pushing you towards a very low commission, it is better to leave the deal or the listing. Lower commissions do not bring or create agent commitment to the sales process.
- Recommendations should always be made in any marketing proposal for a commercial property. Show the client that you have a clear strategy to implement and that you can put it into action immediately. Using timelines or project planners in your proposal is always helpful.
- The attachment at the back of your document can include property details, photographs, plans and drawings, samples of useful marketing methods, and anything else that supports the proposal.
Create a great proposal template and start selling. Good luck!