The journey to purchasing commercial property can be complex and unique to each buyer. It is fair to assume that those purchasing commercial property are savvy, however not all buyers feel that they have the right knowledge to make an informed decision with complete confidence.
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Stages in buying journey
The four key stages in the buying journey are: assessing the market, searching & shortlisting, negotiating and purchased & organising. The amount of time spent in each stage is dependent on the confidence level of the individual.
Buyers that are purchasing as investment owners tend to have a range of experience. Whilst they typically have a preference for a certain asset class, they know it is important to not purchase emotionally or out of habit. They research heavily to make sure a purchase will yield long term profit and tend to be more confident than the typical customer when it comes to making decisions in the commercial real estate space.
Confidence with commercial property
For the majority that are confident, it may not come as a surprise to learn that there is a tendency to stick to the asset class they are familiar or comfortable with. On the other hand, some investors are open to investigating other asset types or locations as long as they still meet their defined investment parameters. As an agent, it is important to understand what they are looking to invest in and provide as much detailed information as possible, as this can differ for each investor. Investors will move on if they feel like their time is being wasted or if they can't access the information they need in a relation to a particular listing.
The most sought-after information relating to investment properties include:
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Expected yield
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Capital growth potential
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Tenancy status
Investors do not view all tenanted properties as equal and tend to have a preference for properties that have a longer lease in place. Property type and perceived quality of the tenant is also important. Knowing this, and having this information readily available for the properties you are advertising on realcommercial.com.au, can help in providing the next level of assurance investors are seeking and ensure you are seen as a trusted agent.
Investors also tend to have a positive perception towards the commercial property market, which indicates that they are assured of their investment decision.
Perception of the market
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Positive
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Neutral
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Negative
As an agent, it is important to nurture buyers through the funnel and help them build confidence to make the big decisions. Investors have likely been through the buying process before and are on the hunt for granular details. They become frustrated when important information, such as a price, is not made available. Providing your customers with these valuable details will give you the leg up in building long-term, mutually beneficial relationships.
You can help build confidence with your investment buyers by:
- Ensuring your listings include all the details they're looking for. Do you have prices on all your listings? Do you have details of rental income? If not, include this information so it saves time for the interested buyer. It may be the difference between them scrolling past or clicking on your listing.
- When you get a call from a customer who seems to be researching, don't discount them. They have the potential to become an active buyer and if you coach them through the journey, you will be more likely to increase customer 'stickiness'. Help them understand the benefits of purchasing commercial property as an investment. This ground work builds their confidence for when they are ready to take the next step.
- Let them know what key documents they will need to complete at the negotiating stage. This makes the process less daunting.
- Maximise your presence on realcommercial.com.au. We know both researching and active buyers are on the site weekly, so build your presence here.
Building a strong relationship with investors at the stage of purchasing can also help ensure you remain top of mind as their preferred agent if they decide to lease out or sell their property in the future.