For Commercial Real Estate Agents

July 11, 2006 Ezine

July 11, 2006




































Read by More Than 30,000 Agents

Dedicated to Transforming Your
Commercial Real Estate Brokerage Business

In this Issue:

The Times They Are a Changin'

Agents I talk with from different parts of the country are telling me similar stories these days---stories about investors who aren't as excited about buying properties as they were months ago, and how they're much slower to act now than they used to be.

And at the same time many sellers still want the prices their properties would command if appreciation and speculative buying were still as hot as they were months ago, too.

And in putting these two factors together you have what could be one of the worst situations investment agents can be faced with--buyers and sellers who are basically indifferent about making a deal.

Low cap rates were making sense in many markets throughout the country while annual appreciation was still going through the roof in many areas. But now that rapid appreciation has tapered off in many areas, all the potential buyer is often left with to consider is a property with a low cap rate that won't appreciate like it did before. And for many prospective investors that's not much to really get excited about now. But the sellers still want the inflated prices they were used to getting until only recently, and if they can't get these prices anymore many of them are content just holding onto their property for now...unless there's a bona fide underlying need for them to sell.

It used to be in many areas across the country that a property could come on the market listed at a high price, and then in just a short period of time the market would catch up with the listing price and the property would then sell for the full price, and sometimes for even more than that. It was as if buyers could just put the photos of 10 different properties on a dart board, throw a dart at the board, and feel confident that in buying whichever property the dart landed on, they'd be considerably wealthier a year later for having done so.

But in the midst of this market transition, the market for users buying properties still remains strong in many areas. And at the same time oftentimes it's still difficult to find the properties to sell to these companies as the supply of these properties for sale often remains tight.

The reason the user market remains strong in many areas is because users aren't buying properties as a pure real estate investment. They're buying buildings to operate their businesses out of, which is very different from buying based on cap rates, cash flow, and anticipated appreciation. Most companies would rather own their buildings than lease them. And it's this desire along with the profitability of these businesses that allows the companies to buy their buildings for reasons that have no relevance to pure real estate investors. Pure real estate investors buy because of the overall financial return they anticipate from the property, as they have no business they'll be running for profit out of the property.

With this in mind, you must do everything you can to get people out of their state of indifference over buying and selling right now. And when you take new listings for sale, you need to do so at prices the owners will negotiate downward from. Until recently buyers would pay the full asking price for a property and sometimes even more, but that's happening less frequently nowadays. Buyers are back to wanting and expecting to negotiate listing prices downward, and if the sellers refuse to budge off of their asking prices, this will make it increasingly more difficult to negotiate a sale.

I know it's been awhile since many of us have encountered this kind of negotiating in our marketplaces, but this is what used to be called a "normal" where negotiating downward from the listing price was what occurred on almost every sale.

When buyers are feeling more uncertain about what represents a good deal nowadays, when they're able to get the owner to negotiate his price downward, this makes them feel more confident that they've really found a good deal. And sometimes the very act of negotiation itself is the glue that makes the deal go down as both sides feel they've worked hard to get what they wanted from the other person.

So you need to get your people out of their state of indifference over buying and selling. Observe what's going on in your market, gather important statistics and data on where you see the trend going, and present this information to your people as a report on where their market is now headed. When you're able to show people where things are moving to based on solid, verifiable evidence, they're more likely to agree with you, and they're more likely to take action.

While keeping this in mind, one of my coaching clients recently ran a report on how many investment properties had sold year-to-date in the first six months of last year vs. in the first six months of this year in his own territory. And the results from the report indicated that the number of closed transactions decreased a full 50% in his area when compared with what happened year-to-date last year. And now with this information, along with other information and trends he's put together, he's making a case to his owners that they should sell now or be prepared to wait for years before they'll ever see these prices again.

This is the kind of action you need to take during transitioning times like these. Determine where the market is headed, make a compelling case with data, statistics, and information that's completely verifiable, and compel your people to take action.

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.

Harnessing and Putting More
Commission Dollars in Your Pocket

Can you imagine what life would be like if you didn't have a computer to utilize in your commercial real estate business today? Imagine having no contact management software to keep your phone, address, appointment, and contact information for your clients in your real estate business right now.

Well, that's what things used to be like until brokers began making the transition from Rolodexes and keeping stacks of business cards bound together with rubber bands, to utilizing contact management software on a regular basis. But with today's newest technologies there's so much more available now to grow your commercial real estate business to the next level and make you more productive.

Here's what I'm talking about:

  • A new technological innovation that has owners amazed at what it can do to market their properties. When you include this innovation as part of your marketing program during your listing presentation, it can oftentimes make the difference between you being awarded the listing, or it being awarded to one of your competitors instead.
  • Do you ever wish you could more easily find accurate ownership information for the properties whose owners you want to build relationships with? Well I just took a demo of the most recent version of a product that does a tremendous job of telling you exactly who the true owners are of commercial properties in your area...complete with their personal names and the telephone numbers to contact them with!
  • And finally, how would you like to put your client and prospect follow-up on autopilot? There are now programs that will do this for you and make it easier for you to develop new business for yourself while these systems do all your follow-up for you...Both with your prospecting, and with your follow-up on the transactions you've already generated.

These are three of the subjects I'll be discussing during my upcoming Commercial Real Estate Inner Circle teleseminar call on Wednesday, July 19th, at 8:00 p.m. Eastern Time. The title of this next call is "Harnessing Today's Real Estate Technology to Put More Commissions in Your Pocket."

If you've ever felt you'd like to become more productive in your real estate business working the exact same hours as you are right now, this is what I'll show you how to do during our next call. And if you can't join me at the exact time of the call that evening that's OK. I'll send you an audio CD recording of the call along with a written transcription of it and important highlights from the call in the mail!

My normal monthly rate for my Inner Circle program is $297.00. But to learn how you can join me on both this call and the following month's Inner Circle call for FREE (a $594.00 value), receive audio CDs, written transcriptions, and highlights of both calls sent to you in the mail, ask me questions and get answers on how you can improve your brokerage business and make more money, and learn how to immediately start taking your commercial real estate business to an entirely new level, click here.

And remember, just learning how to implement this one technological innovation I've mentioned into your marketing plan and listing presentations will put tens of thousands of additional commission dollars into your pocket right away!

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.

"Working with Jim has increased my productivity to a higher level. As the top agent of my firm for the last eight years I was at a point where I thought I had hit a ceiling. With Jim's help I found that I am
only just beginning and am now experiencing my most successful year ever! I can attribute a lot of my success to Jim and his ability to keep me focused on success combined with the tools that he has to get me there."

Scott Caswell
Delphi Business Properties

Click Here for More Testimonials

Click here to visit my Web site. There you'll find many articles and previous editions of my Ezine to assist you in taking your real estate career to the next level.

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If you find yourself trying your hardest in your real estate career and still not making the amount of money you know you can, you may want to find out more about my one-on-one real estate coaching program. If this is something you may definitely be interested in, please send me an E-mail and let me know.

If you arrange for me to lead a seminar or training for your real estate company you qualify for FREE coaching! Call me or E-mail me for more information.

Please forward this Ezine to anyone you know who is interested in becoming a better, more productive real estate agent.

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