Closing a Commercial Real Estate Deal
Closing a commercial real estate deal can be a very difficult and frustrating task, which takes new real estate agents months to master. Usually these new agents burn out on the profession before tasting any success. To successfully close a deal it is imperative that the real estate agent manages to satisfy the buyer and the seller and reaches a deal which is acceptable to both sides.
Understanding the basics of the business
The first thing which is of significance is the basic understanding between commercial and residential real estate. In commercial real estate, you, as a real estate agent, need to present the property as the best available in the market and convince the buyer that his or her business will have positive effects by buying that particular piece of property. On the other hand, in residential real estate, an agent has to present a house either for sale or purchase as the best to host a family with all the basic necessities of life in it. In both cases the location holds key importance.
Performing cost-benefit analysis
As a real estate agent you will be required to analyse balance sheets of the concerned companies and then perform cost-benefit analysis in order to successfully close a commercial real estate deal.
Research work
You need to conduct a preliminary research regarding the building and the client. When you are relatively new in the business, your firm will help you in the research process, but later, with experience, an agent gains confidence and enough links to conduct a solo research regarding the building and the client. However, assistance from an accountant could be useful when producing the numbers you need.
Honesty will open doors to many deals for you
Always be honest in all your dealings. You might be tempted to manipulate numbers in order to fool the clients into signing a deal, but this will ultimately damage your reputation as a real estate agent. This will also be bad for your future in the business.
Close relationships with the clients
It is imperative that you build a strong relationship with your clients. Your closeness with the clients will gain their trust and bring you more business, making the deal closing process easier for you.
Give the clients space
Give your client space and always wait for him or her to be ready before closing a deal. Never rush the process, as your main job is to provide an exact assessment of the risks and benefits related with the deal.
