How to Close a Commercial Real Estate Sale
Closing a commercial real estate sale takes most new brokers months to achieve. Most burn out on the profession before they find success. Closing a commercial real estate deal is about serving as a clean, honest and direct conduit of communication between the buyer and the seller. Teach the buyer why purchasing this building or unit of land will benefit him more than buying something else in the area.
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Instructions
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Learn more about the difference between commercial and residential real estate. Commercial real estate sales are about producing rational analysis demonstrating that a particular commercial space will suit the needs of a business better than another one.
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Consider taking courses in finance and business administration. Analyzing the balance sheets of similar companies and performing cost-benefit analysis for clients are crucial to closing a commercial real estate sale.
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Perform preliminary research about the building and the client. In many cases, your firm can guide your research. In other cases, particularly as the broker gains more experience, he will largely self-direct the analysis. In some cases, it might be necessary to work with an accountant to produce the numbers you need.
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Be honest. Don't manipulate numbers to fool clients into entering a deal. Closing a sale that ends up harming a client will damage your reputation.
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Build a close relationship with your client, whether it is the landlord or potential tenant. Use the data available through your research firm of other businesses. You will likely have to sign confidentiality agreements to gain access to certain information.
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Close the deal when your client is ready. Don't rush the process. Your job as the commercial real estate agent is to provide an accurate assessment of the risks and benefits of moving in to a particular space--not to maximize your commission.
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Resources
- Photo Credit fxp, Flickr
