The commercial property year has well and truly started, and in most locations formed some common trends and patterns. If you are a commercial agent it pays for you to read the patterns in the marketplace and use them for the opportunity they provide. Property change and churn factors are active in most markets. They are an opportunity in waiting.
These are some of the common trends that most agents are seeing:
- Sellers are now adjusting their prices to suit the real property market and the existing levels of enquiry
- Buyers are fewer and taking longer to make a decision. Some buyers are looking for bargains.
- Finance is still tougher to get and the banks remain selective and diligent in the provision of a mortgage to buyers.
- Tenants are out looking for better premises at more favourable rents
- Developers are not doing much unless they can see a significant demand for a certain property type
- Developers are finding in many cases that the set up and construction costs for the new developments is out of balance with the achievable sale prices
Taking these things on-board, it is the agent that works both the leasing and the selling market that catches more opportunity. You have to be versatile.
As this article is being written it is the start of the second quarter of the 2012 calendar year; it is commonly the time where more listings and deals occur leading up to the change of financial year.
Right now is the right time to push your marketing and networking to the fullest. Sellers and Landlords that need help with property this year are typically planning that process right now.
So the best ways forward if you are an agent is to build a solid prospecting and cold calling model that is relentless in its process and drive. You have 8 months of the year to make the commissions that you need. Now is the time to get moving on this as it takes about 3 months of real effort before the conversions and listings start to appear.
Should you list everything that comes your way? Probably not, given that the market and buyers or tenants are so selective currently. It is better to choose the properties to list that are realistically priced or rented. You only have a certain amount of time to apply to your listed properties, and on that basis they should be the properties that offer the most realistic chance of selling or renting.
On one final note, it is appropriate to look at your listing strategy and decide if you should be taking open listings or just exclusive listings. In the case of exclusive listings, you have control of the property for a definite period of time and you can do more in marketing. In simple terms and in most cases exclusive listings sell faster and at a better price than openly listed properties. Make the right choices here.