How to Choose the Best Real Estate Agent for Your Property Sale

city buildings on skyline

When it comes to selling your commercial or retail property, the buyers that you need are the ones that can act in today’s market and economy.  To find the right buyers and bring them to your sale is a skill that only the best real estate agents can provide. 

The Local Property Economy

Those agents know what the local economy and businesses are doing; it is that information that is valuable to you with your property challenge.  Choose your agents with a questioning approach regards market awareness, property type coverage, and target market penetration.

city at night
Understand your property and the local area of buildings.

So what is actually happening with investment properties in Brisbane now?   There are still buyers out there that are looking for good investment property stock; that is something with a tenant mix, stability of cash flow, and future demand.  Are you taking your property to the market soon in Brisbane? 

Consider the facts and challenges around your property and what it is worth.  If you were buying it today, what would you pay?  Would you pay a ‘premium’ or would you look for a ‘bargain’.  It sometimes pays to ask yourself those questions and put some reality into the real value that your property presents to any purchaser.

Agent Questions

Let’s go back to the ‘agent question’.  One of the most important elements of property marketing today that an agent can bring to a seller is direct access to a comprehensive database of qualified prospects.  That database list alone will help you fast track inspections, enquiry, and the right type of property offers even in the earliest stages of the property promotion.

Ask your agent if they have a database and a target market to suit your real estate challenge.  Ask them how they are going to tap into it to help you with your property requirements and investment outcomes.

How to Promote Your Commercial Property for Sale

city buildings on skyline

Marketing and selling commercial investment property today changes by location, by property type, and by the time of year.  When you decide to sell your investment property in Brisbane it pays to ask your commercial real estate agent to give you a market profile update and target market assessment.  In that way, you will know exactly what can happen when you take the property to the market.

Think about these questions:

  • Who are the right buyers for the property?
  • What are they prepared to pay?
  • Why should they buy your property?
  • When is the best time to promote your property?

All properties are different as is the enquiry that you can achieve at a particular time.  So, questions like these help you focus on the things that matter. You can find out about the local property market, the recent enquiry, the price and rent outcomes, and the likelihood of moving the property quickly at a reasonable financial result.

city buildings
Every property market is different, so ask questions.

On that basis, marketing should be individually designed for the property and the existing market circumstances.  Here are some key points to consider in selling your investment property:

  • Growth of local and regional businesses
  • What buyers are looking for today
  • When the best time to sell the property may be
  • Local supply and demand for space to occupy
  • Price trends over the last 2 years and the impact on investments
  • Rent trends over the last 2 years and the ongoing renal patterns of gross and net rent
  • Location of comparable properties in the area with which you compete.

So all of these questions help you stay on track with your property promotion. Plan how you want to sell a commercial property, and just who the local agents should be to do that with great effectiveness.

Setting Your Commercial Property Price

city buildings on harbour

When you sell a commercial investment property, the price you achieve is driven by the market.  It is the buyers in the market that generate the interest and ultimately make the offer. 

Contrary to popular belief it is not the sellers or the real estate agents that set the final price.  What the sellers want for their property and what the agents think they can get are in reality an educated guess or wish based on market trends and sometimes other pricing evidence.  In saying that, the end price for any commercial property is driven by the buyers in all cases. 

Price Changes

If a sale goes ahead it is because the buyers are willing to pay the money; sure the seller has to accept that price, but without a buyer making the offer, the price for a property is just a number. At times the real estate market can be ‘saturated’ with overpriced properties. Time on the market is a big factor in any property sale. If you are ready to sell your property, then consider a ‘fair’ price, but not an ‘excessive’ one.

money on the table
What is your property price? What is it worth?

Real estate agents offer their clients real benefit to the sale process because they are working with buyers and tenants all the time.  The database that an agent has is a huge source of opportunity when it comes to selling your property. 

Database Value

The bigger and better the database, the more exposure to qualified buyers your property will have.  This massive exposure that some agents have to buyers is of great advantage to you when you want to sell the property.

At the time of putting your property on the market, find the agent with the best and most up to date database of potential buyers; it will be a direct reflection of their market penetration and territory domination.  They are the agents that should sell your property and they are the ones that will have an idea of what buyers are willing to pay in the current prevailing economy.  Make the right choice and get the best agent to help you sell your property.

How to Boost Investment Performance in Commercial Property

city buildings at night

In commercial real estate, the yield of the property is commonly referred to by investors.  It is a point of reference or standard for the property type and the location. 

Property yields in this market vary considerably as property investors focus on different property types and situations. Investors come and go from the Brisbane property market based on the ‘opportunity’ factor. That assessment will be different for many investors as they choose property types and precincts to invest in.

Always use caution when considering yields in this market.  It is notable that many yields have moved out by up to 1% due to economic pressure and changes.  There are still some good properties and investments available.

man holding eight ball

Here are a few of the key points to look at when it comes to assessing property opportunities.

  1. Strength of income is paramount. Most particularly this will come from the leases on the property.  When a lease is well structured it will underpin and strengthen the price for the property.  Look at things like rent types, outgoings recoveries, option periods, length of lease and make good provisions.
  2. Tenant and landlord covenants will feature in the lease and put obligations of occupancy performance on both parties.  For this reason, the checking of the lease before sale or purchase is high on the agenda for the experienced investors.  A good solicitor will help with the process.
  3. Physical aspects of the property and structure should always be checked by experts.  In this market, a due diligence process in any property sales and purchase is a wise move.  A due diligence condition in a contract could take some days if not weeks to be fully checked and satisfied.
  4. Occupational Health and Safety together with the elements of Essential Services and Mechanical performance on the property should be checked by experts including engineers.  Legislation in this regard can impact the property with high costs of remediation or changes to Essential Services.  Compliance is critical for the property investor.
  5. Permitted use, Zoning, and Building Occupancy Certificates on the property should be checked and related back to how the property is currently used.  What you need to know is if any breaches are existing now.
  6. Survey plans and as-built drawings should be sourced on every property purchase.  You will need these critical drawings many times in the future when tenants come and go from the property.  They are very expensive to obtain when the go missing.
  7. Location is one of the major factors in the future of the investment property, but do not overlook potential or known changes to the regional demographics and business community.  They can impact the rental and future leasing opportunity in the property.  You can have the best property, but if it is in a poor location or contracting business community, then the property as an investment will have to be reassessed.

These elements will help you consider future property purchase opportunities.

Getting the Right Price for Your Investment Property

When you sell a commercial investment property, the price you achieve is driven by the market.  It is the buyers in the market that generate the interest and ultimately make the offer.  Contrary to popular belief it is not the sellers or the real estate agents that set the final price. 

What the sellers want for their property and what the agents think they can get are in reality an educated guess or wish based on market trends.  The end price for a property is driven by the buyers in all cases.  If a sale goes ahead it is because the buyers are willing to pay the money; sure the seller has to accept that price, but without a buyer making the offer, the price for a property is just a number.

Real estate agents offer real benefit to the sale process because they are working with buyers and tenants all the time.  The database that an agent has is a huge source of opportunity when it comes to selling your property. 

The bigger and better the database, the more exposure to qualified buyers your property will have.  This massive exposure that some agents have to buyers is of great advantage to you when you want to sell the property.

At the time of putting your property on the market, find the agent with the best and most up to date database; it will be a direct reflection of their market penetration and territory domination.  They are the agents that should sell your property and they are the ones that will have an idea of what buyers are willing to pay in the current prevailing economy.  Make the right choice and get the best agent to help you sell your property.

What to Look For in Commercial and Retail Leases

shopping centre mall foyer

Property owners that lease commercial property to tenants should keep a close eye on the terms and conditions of their leases.  It is all too common that a critical date or situation is overlooked in a lease and the landlord or property manager has to chase down and remedy the matter. 

The key secret to keeping a commercial property on track is in understanding the leases and thoroughly actioning any date critical terms and conditions.

city building high rise
Look at Your Investment Property Comprehensively

There are many things to look for but here are some of the main ones to monitor:

  1. Rent review dates
  2. Option to renew dates
  3. Lease expiry dates
  4. Renovation date requirements
  5. Insurance certificate of currency evidence
  6. Charges for outgoings
  7. Reconciliation of outgoings
  8. Payments of sundry charges under the lease
  9. Rent payment provisions
  10. Turnover reporting to the landlord
  11. First right of refusal provisions

The list can go on, but importantly the critical dates in a lease are handled and controlled.  In this way the property can be optimised for the landlord and the tenant.

When it comes to marketing and selling your property, the time you spend on tracking and checking critical dates is invaluable in the long term.

Contact Systems for Commercial Real Estate Tenants

tops of city buildings

When you own a commercial or retail property, it pays to keep in close contact with your tenants.  They are a key part of the property performance and should be nurtured to stabilise income from the property.

As part of keeping in contact with the tenants in your property, you can create a tenant contact plan that formalises the meeting and any feedback that may happen as a direct result.  Many larger landlords in high performing properties will create and hold tenant contact meetings with all tenants at least every 90 days.  In retail property this cycle is shorter given that a retail property is a very active type of property investment.

So just what can and should you talk to your tenants about?  Try this list:

  • Need to expand premises
  • Need to contract premises
  • Maintenance needs in the property
  • Interaction with other tenants in the same building
  • Exercise of lease option
  • Use of the building
  • End of lease issues
  • Renovation or refurbishment plans
  • Insurance
  • Terms and conditions of their lease and compliance to that

It is interesting to note that good tenants are constantly being networked by other property owners and real estate agents in your local area.  All the more reason to keep in contact with your own tenants to make sure they are happy in occupancy.