How to Negotiate Listing Commissions | Commercial Real Estate Training
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If you are in the business of providing specialised sales and leasing services to commercial property investors and landlords, you will need to be well-versed in commission negotiations as well as commission standards for your location.
Unreasonably large numbers of agents believe that they must discount their commission in order to secure the listing.
Nothing could be further from the truth; most property investors and landlords today understand that vacancy costs or unsold buildings cost them far more in the long term.
That cost can be in terms of lost rents, outgoings, or lower prices compared to any minor savings they might be able to achieve by negotiating a reduced commission for a transaction.
Costs and Fee Solutions
When it comes to providing a specialised and professional commercial sales or leasing service, there are a plethora of options available to you. Preparation is the key to listing conversion.
Recommendations made to the client will help them see and understand how you are of real value to what they require with their property targets.
Create visual tools and listing systems to help your clients see and understand what you can do with their property. Essentially you have to be better than the other agents in what you have to offer.
Property Listing Costs
It will not be difficult for you to convert more clients and listings as part of the listing presentation process if you can demonstrate that you actually provide a strategic and special approach for your clients, that other agents are not providing.
If the landlord or a property owner insists on a low commission, it is likely that they do not recognise the dedication and drive that you can bring to the listing on an exclusive basis; alternatively, it is possible that you have not adequately marketed your abilities when compared to other agents.
Experienced Clients and Commissions
Many of the real estate clients with whom we work in commercial real estate today have a great deal of experience when it comes to negotiating commissions and associated listing agreements with real estate agents. So, as an agent, you have to be prepared for that ‘astute’ and experienced property owner or landlord.
In order to convince clients that you are the best choice of agent when it comes to solving a property vacancy or investment sales problem, you should be able to demonstrate some points of differentiation in the professional services you provide.
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