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Commercial Classroom > 2010 - What's your plan?


27 Dec 2009

 

This is a great time of year for evaluating one’s business progress. How did you do in 2009? Many agents will conclude it was a tough year. Is it the economy’s fault that you did not do as well as you planned?
 
Perhaps you did not adjust to the changes in the market. Some agents have had a great year taking advantage of an upsurge in leasing activity (while financing challenged sales). Others focused on distressed properties. In the third and fourth quarters we even saw an increase in investor activity as prices declined and CAP Rates increased.
 
I have been asked where do I see the market in 2010. First, where are we today; markets are still struggling and declining commercial values have not yet bottomed out. But the cycle is beginning to turn. Generally the residential market activity runs 6-8 months ahead of commercial. We see more activity now, houses selling with fewer days on the market and close to a stabilization of value. My prediction is that commercial values will bottom out early in the year and by the end of the second quarter we will start to see a slow commercial rebound!
 
The real estate agents role in the transaction has changed. We are no longer salespersons; we must now be the consultant, advisor and educator of the client and customer. We must be the local market expert. We must show the value we bring to the transaction. Do what you have to do to become more educated; so you in turn can educate the consumer. Take a course or two or three, consider CCIM or GREEN instruction.
 
Goal setting is important to keep us focused. Where is your life heading next year? From a business perspective on December 31, 2010 how much money will you have earned? Planning is figuring out specifically how to accomplish that goal. How many sales/leases will you need to close? How many properties do you need to list? How many people do you need to meet to find a qualified customer? Out of 10 qualified prospects how many actually buy or lease? Do the math; our business is still a “numbers game”.
 
We are in the people business. Re-examine your prospecting techniques, what is working, what is not? Where have your new clients and customers come from: direct mail, target marketing, referrals, networking with other agents, belonging to business or service organizations, leads groups, telemarketing, door-to-door, cold calls, print advertising, personal website, website marketing, social networks? If it turns out that your leads group has turned into a “fun breakfast with your business friends” and your not getting any business from it; it’s no longer a productive business tool, change the group.
 
When was the last time you revised your listing presentation? Today we deal with consumers from various age groups who communicate differently. Will a customer from generation X or Y have the patience to view a 30 slide presentation? Does your senior or baby boomer client text message? When I started this business a very long time ago, we only needed one listing presentation but today you need to have many varieties ready to go: Client presentations for sale or lease, buyer and tenant representation, long versions and the quick placemat presentations. .. and don’t forget to fine tune your 30 second commercial for when someone asks you what you do.
 
Time to get plan and prepared for 2010; it is going to be a great year!

Edward Smith




Smith Commercial Real Estate
Edward S. Smith, Jr.
Licensed Real Estate Broker in New York and Connecticut
Berkshire Road, Sandy Hook, CT
Berkshire Road, lLicensedL 


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