There will always be a percentage of commercial property owners who prefer to open list their property.
To them, it makes sense: why have one agent working to sell or lease your property, when you could have four or five?
But as an agent, how can you ensure you win in that in that open market scenario? How can you increase the chances of you being the agent who finally seals the deal?
Ask some key questions
Spencer says there are two important questions you need to ask the Vendor during your initial conversations:
- “Why do they believe the property hasn’t leased/sold?”; and
- “Why does the agent currently representing you believe it hasn’t leased/sold?”
Once you’ve listened to their responses, it’s time to reinforce that there is certainly a market for the property, it’s just that something is holding it back.
“What you've got to do is link all those answers back to, ‘Well, it sounds to me that the property is leasable, it's just that you don't have anyone that's responsible for your listing’,” Spencer says.
Pump up exclusivity
The obvious answer to winning in an open market is to get that property off the open market!
The reason many open listed properties remain on the market for extended periods is that no one is responsible or accountable for them, with agents reluctant to dedicate time and resources to a property they’re unsure if they’ll get a return on.
“The way the agents see it is they’re not going to get a return on effort. There’s a one-fifth chance (if the property is open listed with five agents) of actually leasing or selling the property, so therefore you get one-fifth of the effort,” Spencer says.
Spencer says it’s then time to explain to the owner that the only way to get the best possible result for a property is for an agent to be dedicating 110% effort to it, and they’ll only do that if they’re the one guaranteed a return at the end of the process.
The long-term impact
In order to encourage a property owner to move away from an open listing, it’s pertinent to point out how an open listing is more than likely hurting their chances of getting it leased, as well as its long-term value.
“Explaining to them that the longer the property remains on the market listed, relisted, the less value it's worth long-term,” Spencer says.
Getting the best buyers/tenants
It’s also worth pointing out to the owner that if agents have the choice of taking a motivated buyer with deep pockets through listings the agents have exclusively, or listings that are on the open market, it’s obvious which they’ll choice.
Again, it’s about the likelihood of that agent getting a good return for their agency.
“What I know about all of our red hot buyers is we certainly take them through our exclusive campaigns,” Spencer says.
“So even if you do get a tenant or a buyer (as an open listing), it would be safe to say it won't be their best. And if it is, it will be a recycled buyer that certainly won't have as deeper pockets.”
What do they want out of it?
While vendors often have relationships with multiple agents and are reluctant to let go of some, Spencer says sometimes it’s a matter of appealing to their head over their heart.
“The thing that I would be tackling is what's in the best interest of the property? And in some ways, what are they obligated to? Are they obligated to the best interest of the property or are they obligated to all the agents? Who are they most loyal to?” he says.
“Is it the property? And the property then funds the wealth of the family? Or are you obligated to the agents and the relationships?”