The nature of commercial real estate and says that you will be creating many property proposals and marketing proposals. One essential rule of thumb is that a proposal is only to be done on the properties that you want to market and that are owned by clients who are genuine in the sale listing process. You can waste a lot of time in preparing proposals for clients that are not well qualified.
It is a fact that many clients will seek proposals from a number of agents just to justify their preference for a particular agent. Their decision was made before they even called you.
Should the client ask you for a property sale proposal, qualify the request with great focus and only proceed on the basis of the request being genuine. Your property proposal should not be created simply to justify the selection of another agent in the sale process.
The property proposal you create can be for a variety of marketing situations such as the lease, sale, or property management. The property types will also be different therefore dictating unique documentation and recommendations.
So let’s look at some of the key parts of the sale proposal that you could construct.
- An Executive Summary should always appear at the front of the document and highlight over 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 will not get past the executive summary unless the points of attraction are clear.
- Explanation and observation on current property market trends is essential. Tell them what is going on in the market at the moment so that the client is fully informed of the competition properties in the region and the prevailing economic factors.
- Broad property details should always be given. This shows the client that you completely understand their property and what you are about to sell. It also allows you to display your awareness of the property type and its features that make the property more saleable.
- Prospective buyer activity or the sourcing of should always be summarised. The reality is that you know the property market better than anyone else. Tell the client exactly who or what the target market is. Tell them how you are going to tap into that target market.
- Methods of sale will always vary. Choose the correct method of sale which suits the market and a property. Not every method of sale works in every situation. 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 regards the methods of sale so that the client can understand where you are coming from on the method of sale.
- Likely selling price or range will be of interest to the client. The final price recommendations will be based on your market awareness and trends from other recent sales. If the property is very unique, this will be more difficult to identify and in such circumstances it may be wise to move towards a method of sale that is driven by the market. This method of sale is typically expressions of interest, auctions, or tender.
- An exclusive agency agreement is essential in every property promotion. It is the only way to keep control of the marketing. Open property listings are essentially a waste of time although they are very common in the sale of industrial property. It is your choice as to whether you want an open listing. Better business for the long term will be built on the foundations of exclusive agencies over which you have total control during the marketing campaign. Exclusive agencies generally extend for at least three or four months in commercial real estate. The nature of the investment property requires lengthy campaigns in most situations.
- Why should I use “Your Agency”? Give the client a real reason to use you and do not base it on discounted commission or free advertising. Your clients must be genuine in the sale process and be motivated by real elements of value. You should be the best agent to provide this and so give them the reasons why.
- “Your Agency’s” Clientele will be of some interest to the client. Show that you have had experience in other property promotions of similar type. Provide testimonials from other clients. Provide stories of success from other property types.
- “Your Agency’s Selling Team will be relevant to the marketing document. The client should know who will be handling their property promotion and what their level of skill is. The person applied to the sale process should have real experience, or alternatively be tagged to another member of the office so that can bring that experience to the table.
- Timing of sale should be clearly made as a statement strategy. Not every property will sell at any time. This is certainly the case with a retail property.
- Advertising costs and marketing strategy need to be clearly defined. As part of the proposal process, the client approves those costs and strategy before you start acting on the property. Get the money for that marketing budget paid prior to any advertising being commenced.
- Selling fees are always important. Selling fees or commission should be competitive but realistic. If the client is pushing you towards a very low commission it is better to walk away from the deal or listing. Lower commissions do not bring or create agent commitment to the sale 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 start it immediately. The use of timelines or project planners in your proposal always comes in useful.
- The Annexure at the rear of your document can include property detail, photographs, plans and drawings, samples of useful marketing methods, and anything else that supports the proposal.
Create a great proposal model and get selling. Good luck!