When it comes to selecting the best agent to sell your commercial investment property, a fateful mistake made by some vendors is selecting the wrong agent. That may be because they pick the managing agent that knows the property inside out because they think this is the most important point or go for the real estate office located closest to the property being sold as they think inspections are the key.
Whilst these agents may turn out to be the best choice, how will you know unless you know what attributes you are looking for in your preferred selling agent?
In all walks of life its best to seek out an expert – if you had a broken leg you wouldn’t visit an optometrist, would you!?
For this reason, we have suggested 5 important points to consider when selecting the right commercial investment agent. These points will help you find out which agent is the expert and likely to get you the best possible result:
1. Track Record
Find out which agent has a proven track record selling property in this asset class, have they sold a building with the same lease covenant before?
Are the agents able to demonstrate they have sold properties in the same suburb or region as your property? Have they sold those properties to local investors or were they able to bring in outside capital from different cities or overseas for example?
2. Spin off and synergy
It is worth finding out if the agent is selling any other properties that will potentially have strong synergy with your own.
For example, if you have a bank leased property that you want to sell, in say a regional town – it may be a benefit to you if the agent your speaking with was selling a similar property in an even stronger location, like a capital city for example. The buyers that miss out on the stronger property may consider your property as a second preference.
3. Marketing, have all bases been covered in a cost-effective way, have we thrown the net as wide as we can, essentially a numbers game
The job of the real estate agent you select is not just to sell the property, but to get the best price. In many ways, getting the strongest possible price for a property is a function of having the greatest number of enquiries possible.
To get investors to enquire on the property, ask the agent how they intend to market the property.
This doesn’t just include signage and an internet listing, it means local and wider coverage across online and offline platforms in order to throw the net as wide as possible, whilst making sure that all advertising choices provide the best bang for your buck.
4. Set time frame, likelihood of positive outcome
Whilst we all want the real estate agent that we choose to get us the best price, we also want to know what the likelihood of a positive sale outcome will be.
In this regard you want to look at the method of sale the agent is recommending, do they think that an auction program is the best way to sell or is an Expressions of Interest campaign better for example?
Added to this, if the agent is selecting auction as the best method of sale, find out what their overall clearance rate has been. What about in this specific location and asset class?
5. Marketing excellence
Finally, you will want to see examples of the advertising the agent has prepared on other properties they have sold. Have they accurately described the property and highlighted the unique selling attributes that are likely to be important to prospective buyers?
Is the property nearby other important infrastructure? What are the local demographics that make this a strong location? You want to make sure that your agent understands these and can confidently explain these benefits to prospective buyers.
These tips come to you from Rhys Parker, Associate Director, Commercial Investment Sales, Sydney.