For Commercial Real Estate Agents

October 9, 2006 Ezine

October 9, 2006




































Read by More Than 30,000 Agents

Dedicated to Transforming Your
Commercial Real Estate Brokerage Business

In this Issue:

It's Time to Become Excellent at Renewing Your Listings

Most areas of the country are experiencing a transition in their real estate markets these days. Gone are the days of multiple offers bidding-up prices above and beyond their original listed prices, except under very rare circumstances now.

For agents who have gotten into the commercial brokerage business within the last 7-10 years or so, the concept of having to renew one's listings with owners may be quite foreign. After all, during what was the hottest real estate market that most if not all of us have ever experienced, even the listings that were originally overpriced often ended-up selling at or close to their original asking price. And some of these overpriced listings ended-up selling for more than the original listing price with all the continuing appreciation in value that happened during the listing period. But there just aren't very many parts of the country where this is still happening right now.

This is why learning how to effectively position yourself to renew your listings with owners will be an extremely import skill to learn. We're entering into a period right now where many listings may not move until sometime after their initial listing period. And if you don't learn how to renew your listings effectively, the listing agent who replaces you on a property may be the one who eventually ends up making the deal.

This transition time we've experienced from a very hot market to a cooler one is often the toughest time for brokers to deal with. Property owners oftentimes still want the price their property would have commanded months ago when the market was much hotter, and some of these owners still think they should get a price for their property that's above and beyond even what it was worth when the market peaked.

When owners have gotten used to phenomenal annual appreciation in their property values for years at a time, they can sometimes get stubborn and act as if the appreciation is still going on---even when it isn't. And it's this stubbornness on the part of owners who demand unreasonable prices in times like these that can really test brokers' nerves.

Now when you combine this with buyers who are demanding prices that are lower than before, you have a classic real estate marketplace buyer and seller standoff. And the longer this standoff lasts, the tougher it is for the brokers operating in that market to close transactions. It's when sellers finally become realistic and more motivated to sell at what today's market values are, that things begin to really open up once again. So the quicker this transition occurs in any marketplace, the better it is for the brokers operating in that marketplace. Because brokers make more money when there are more transactions closing in any given market, regardless of what's happening with the value of the real estate.

And in a cooling off period, listings will oftentimes not move as fast as they once did, and oftentimes this means they won't be moving during the original listing period. And if you're a broker who's never been in a market where you needed to renew a number of your listings, or it's been a long time since you've experienced having to renew your listings, you could easily get caught like a deer in the headlights if you don't watch out.

Before, when most markets were hotter, there was no need for an ongoing communication plan with your property owners. The only communication you needed was presenting the offers as they came in and negotiating on these offers with the owners. But now when you have listings that sit for long periods of time with no offers on them, following that same strategy will have you drop out most all communication with your owners, which spells out the kiss of death when it comes to having them want to renew their listings with you.

But oftentimes the problem here is that you as the agent don't want to communicate with the owner when you have no new offers or new activity on their property. You cringe at the thought of having to talk with the owner and telling them you've got nothing new to report to them. And it's this desire to run and hide that can easily have your owner thinking you're doing nothing to market their property, and that what they really need to do is replace you and list with a new broker.

But it really doesn't have to be like this. If you contact your owners regularly and tell them what you're doing to market their properties, even when you don't have offers for them, they'll appreciate this much more. And when you can tell them clearly and concisely why their properties aren't moving, you stand a much better chance of having them reduce their prices or do whatever else is necessary to move the properties. So you need to be willing to do the opposite of what you may normally feel like doing in these situations...You need to maintain great ongoing communication with your owners instead of disappearing from their lives and hoping you never hear from them until you have a new offer to present to them.

Put yourself in their shoes. If you were an owner trying to sell or lease a property, and you had received no offers on the property in the most recent weeks and months, and no communication from your listing broker during that time, wouldn't it be reasonable to conclude that your broker had forgotten all about both you and your property, and that they really weren't doing anything at all to market your property? Well this is how your owners will think of you, too, when you treat them this way.

So stay in constant communication with your owners. Tell them what's going on in the market and why you think their property isn't moving. Show them ongoing comps of what other properties have moved for, and what the asking prices are for other comparable properties that are still on the market. Tell them what you've been doing to market their properties and what you plan on doing over the next few weeks to market their properties, too. And if you can, tell them the names of people or companies who have toured their properties and why they weren't interested in them. Getting some real feedback from prospects can oftentimes help you to get a price reduction in your listing price. And in addition, send your owners a written report on the status of their property and what you're doing to market it every 1-2 weeks. This may sound like a lot of work if you haven't been sending out any written reports up until now, but if you work on streamlining and automating the process it will become much easier for you than you think it will be.

So moving forward and staying in communication with your owners is very important during these transitioning times. Transactions on many properties will be made after the initial listing period is over nowadays, and the last thing you want to do is set the stage for a competitor to swoop in, replace you as the listing agent, and make a deal while bumping you out of the picture.

Staying in communication with your owners when you have no activity at all to report to them may not always be what you feel like doing, but it's what will maximize both your income and your ability to renew the greatest number of listings whenever it's time for you to do so.

Click here for downloadable E-books and live audio interviews with top-producing commercial real estate agents. These interviews are with industry experts who show you exactly what they do to continually make $500,000.00 to more than a million of dollars a year.

Mastering Your Power Persuasion Skills

On my next monthly Inner Circle teleconference calI for commercial agents this Wednesday, October 11th, I'll be discussing "Mastering Your Power Persuasion Skills." If you'd like to learn how to become more persuasive with your clients and prospects and get them saying "Yes" to you more effectively, click here for more information on how you can join me on the call for free.

Click here if you'd like more information on my one-on-one coaching program to take your real estate productivity to the next level. One-on-one coaching is available for both commercial real estate agents and company management.

"Within 7 weeks after beginning my work with Jim I landed new business worth over $500,000.00 in commissions to me!"

Mike Giuliano
Lee & Associates

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