The Importance Of A Fair And Reasonable Commission In Marketing Industrial Property
When it comes to selling or leasing industrial property today, the client may consider bargaining when it comes to the commission structure. Whilst the logic may seem useful from the client perspective given that it can save some money, the reality of a lower commission in any sale or lease is that the agent will be less involved and less focused with the listing and the marketing campaign. That can then be a negative and time delaying factor for the client in resolving their property difficulty.
Discounted Commission vs. Well-Marketed Campaigns
Small savings achieved through a discounted commission with an agent are nothing when compared to the major advantages achieved by the client or owner of the property through a well marketed industrial property campaign. Focused and well directed marketing campaigns will help the client achieve greater levels of enquiry, improved inspection rates, faster negotiations, the best price or rental, and a shortened time on market. A fair and reasonable commission structure allows an industrial property agent to commit to the marketing process for the client in a timely way and apply the necessary resources to do so.
Selling and leasing an industrial property can be a very specific process and require strategic steps and processes. Over time that can involve many hours of agent or broker activity; prospecting efforts, database review, and direct contact to the people who may have an interest in the property.
Most high quality industrial agents today will ask for exclusivity as part of the agency appointment. That exclusivity may extend for some months as part of allowing the agent to fully penetrate the necessary target market and implementing the comprehensive marketing campaign. Exclusivity allows that commitment to occur. Selling or leasing an industrial property is complex and not as straight forward as a residential property. Many issues should be thought through and controlled.
Questions For Your Real Estate Agent
When selecting an agent to work on your property needs and challenges, be they for sale or lease, consider the following questions as part of agreeing to a listing with any industrial property brokerage:
- How will the property be marketed over time? What will be the personal involvement of the agent individually in marketing to promote your property?
- How will you be fully appraised and updated when it comes to the ongoing marketing efforts and inspection results?
- What will be the target market for the property and how will the marketing campaign be directed at that target market?
- What are the proven best prices and rents locally for comparable properties in this market?
- How will those competing properties impact your listing or marketing campaign?
- How will be inspections be undertaken on the property and why is that so?
- How will negotiations be encouraged and occur in a timely way for you?
- What are the documentary factors that should be investigated and resolved prior to the commencement of marketing?
- What are the weaknesses that should be addressed in the property prior to the commencement of marketing and inspections?
- What will be the best method of sale or lease to implement as part of the property promotion?
- What are the standard terms of contract and lease that should apply in your property promotion or marketing campaign?
So there are plenty of things for you to question and consider as a client and as part of choosing an agent to market your industrial property. These questions are far more relevant and serious than that of any necessity to discount the commission in the listing process.