There are significant differences between the types of clients in commercial real estate. This then says that your proposal should also be individual and unique to satisfy the client and their needs.
Proposals to government clients are far more formal and intense. Many times we hear the government client suggest that price is not the main criteria in the ultimate decision. Regardless of what they say, this is hardly ever the case and it is the price that generates the shortlist of final contenders to market the property.
After the price has created the short list, it then comes down to the elements of strategy and target market that the various agencies tap into as relative to selling the property. This is where your intelligence and understanding of the local property market as a real estate agent is critical.
Corporate clients and government clients will sometimes issue a brief requiring the proposal to satisfy the provided outline by a required time. When these guidelines have been issued, it is essential that your proposal adopts the necessary format given. Many corporate clients and government clients will discount the proposal if it does not fit their layout requirements.
Expect competitive proposals from other real estate agencies to be just that. Discounts can sometimes be given to improve your competitiveness and edge against the other agencies. This is usually done in one of the following categories:
Higher price estimates
Discounted marketing costs
Incentives for higher prices that may be achieved
The agent paid advertising complimenting the client paid advertising
It is debatable whether this discount process should even occur. It doesn’t normally produce the quality business that you as the real estate agent desire. This then limits your action and your focus.
Perhaps discounts make the client happy, but at the end of the day genuine client happiness is generated by a property that is sold effectively at a good price and in a timely way. Discounts do not normally achieve this.
The best real estate agencies do not discount their services. They understand that a quality service to sell or lease the property demands a quality client who makes decisions based on strategy and not discounting.
The format of your proposal should feature property detail and overview at the front, provide clear recommendations in the middle, and then close on the fees and costs. Always ask for and chase exclusive agency appointments. Conjunction and open agency appointments are a last resort and only if you really want the property on your books. A controlled exclusive listing is better for the client and the property.
One last comment. Generic information regards your real estate office and staffing strategy should only be at the rear of the document and in a restrictive way. It is of little interest to the client.
John Highman is an expert coach in investment real estate, property performance, and tenant mix analysis for Real Estate Agents and Brokers. Learn about real performance opportunities here at http://www.commercial-realestate-training.com/sign-up-here.html
John helps brokers, and real estate agents improve their listing opportunities and commission targets. He has personally specialised in major commercial, industrial, and retail property for over 30 years and knows what works and what doesn’t. Get John Highman’s free tips and tools in commercial, industrial, and retail property at http://www.commercial-realestate-training.comShare on Facebook