Industry Leaders Share 6 Essential Tips For Closing A Deal
Technology is automating many of brokers' mundane tasks, allowing them to handle more advisory services. Prospective buyers and tenants consult brokers for their deep market expertise, beyond what property search engines and aggregators can provide. With the renewed emphasis on the human element of the transaction process, these tips can help brokers maximize the value of their face time — the traditional and virtual kind — with clients.
New York City's CRE brokerage environment is arguably the most competitive and active in the country, so we turned to The Besen Group's leadership for some universally applicable insights on what it takes to close.
“It’s imperative to really understand the asset’s strengths and potential when speaking to investors. At first glance, many deals may not be appealing for various reasons. It’s the broker’s responsibility to make that property a star. Knowledge about the area, including new developments, store and restaurant openings are all critical to the sales story. Understanding the rental potential, apartment reconfiguration possibilities and any other interesting angles must be highlighted to the investor.”
“A deal isn’t dead even if the buyer, seller, attorneys and other brokers say that it is. The difference between a good broker and an exceptional broker is the latter figures out a creative way to problem-solve and get to a closing. The ability to resuscitate a deal and not give up hope is one of the most important skill sets a broker can have.”
“Simple but critical one — all too often, a broker’s tendency is to answer the question or make a statement before clients have even finished their sentences. We’re so ready to pounce that it’s easy to miss key information or misread the room. I’ve observed too many people who hear things that were never really stated! Truly listen to both sides of the discussion so you can ensure needs are met. Take copious notes when important points are made. Reiterate those points to confirm. Seek first to understand, then to be understood, as they say.”
“Owners are busy people. Our job as a broker is to present an intelligent, deep, well-prepared, financially underwritten presentation. I want the seller to want me at his side, to feel secure that I will do the best presentation of his or her property and that I will reach the maximum amount of buyers interested by the vision and potential of the property.”
“As an analyst, I have three simple rules: know your market, know your sales comps, and know your pricing metrics. Current rent rolls, expenses and projections must be as accurate as possible. Try to eliminate any surprises. Present the most up-to-date, detailed operating information and be sure all due diligence-level documents are in order prior to the closing.”
“'A picture is worth a thousand words' stands more than 100% true when selling a property. The offering memorandum should include all of the pertinent information, including the property overview, financial highlights and summaries, zoning and neighborhood information. The pictures are the eye candy that draws the investor in. The pictures should include the property as well as pictures of the neighborhood and street views.”
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