The journey to purchasing commercial property can be complex and differs from buyer to buyer. It is fair to assume that those purchasing commercial property are savvy, however it should not be assumed that all buyers are experts.
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Stages in buying journey
There are four key stages in the buying journey: assessing the market, searching & shortlisting, negotiating and purchased & organising. The amount of time spent in each stage can be dependent on the confidence level of the individual. For those purchasing commercial property for the first time, they may spend more time assessing the market as they aim to understand what's out there and what their options are.
First-time buyers may have a sense of anxiety due to their lack of experience and the steep learning curve surrounding the entire process, meaning they may be more prone to making emotional purchase decisions. Their decision is further complicated as they also need to have confidence in the ongoing success of their business.
This lack of knowledge and sense of anxiety is prevalent when we see that only a proportion, as small as 7%, of owner-occupiers consider themselves as experts and extremely confident in their commercial property journey. The majority of owner-occupier buyers feel reasonably confident but acknowledge they have more to learn before making the commitment to buy.
Confidence with commercial property
Although a low number, it is also important to not forget about the customers who don't have any confidence at all and feel overwhelmed by the process. These are the customers that require extra guidance and support from you throughout their journey.
Now, although confidence levels are varied, the owner-occupier's perception of the market is positive, which indicates they are assured that buying a commercial property is the right move for them and a sound 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. This also helps in maintaining their positive perception of the market.
Starting a commercial property journey is a big decision for many people, so arming your customers with all the information they need gives you the leg up in finding the right buyer for your vendor. Providing the right details at the right time could also sway a potential buyer's decision to purchase. Owner-occupiers may have previously been leasing a commercial property for their business, so the decision to continue doing so or to buy is a big one that can be influenced by the knowledge you share with them.
Help build confidence for your buyers by:
- Ensuring your listings are up-to-date and include the valuable information your customers need. Owner-occupiers are more specific in their search parameters in terms of location and asset class and value current listings to understand the breadth of what is available. If an owner-occupier is interested in your listing and finds out it is no longer available, they may lose confidence in you as an agent when they come across another one of your listings.
- When you know what their specific parameters are, ensure you are sticking within these when suggesting properties. Buyers don't always appreciate agents suggesting properties outside of their specifications and doing so can hinder their trust, potentially making them question if they are working with the right agent for them.
- 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 by coaching them through the journey, you will be more likely to increase customer 'stickiness'. Help them understand the benefits of purchasing and operating a business in that property. 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.
Remember that your current buyers may one day be looking to purchase again, or choosing to sell or lease out their property, so building rapport and a strong relationship at the purchasing stage can ensure you remain top of mind as their chosen agent in the future.