It is very easy in commercial real estate to waste your time with prospects that are not genuine or really looking to act now in a property sale or lease. Many buyers and tenants of commercial property will also work with or approach many real estate agents at the same time for the same property need.
So the message here is, qualify your prospects well before you spend a lot of time with them. Do not assume that they are only talking with you. Always register your prospect with your client so other agents do not later reintroduce the same prospect to the property and claim commission.
Here are some other rules that you can use in a checklist approach to handling enquiry for a property for sale or for lease.
Do not assume facts regards property. Always question the needs of the other party fully regards property detail and timing of that need. Take notes in the process in case you have to prove your introduction of the prospect to the property later.
Always take the prospect to the property yourself so that you can later claim that the physical inspection occurred. Give the client a written report following the inspection.
Provide a detailed investment report or information memorandum to the prospect when they have been fully qualified for the inspection and after they have signed the confidentiality agreement.
Make sure you are really dealing with all the decision makers and not just a part of them.
Understand how they make decisions and if any board or corporate head office is involved in the final decision.
Any questions they give you regards the property should be responded to in writing or email after the inspection as further proof of the inspection
Be punctual in the inspection arrangements.
Know how to access the property and the location of all lights and internal doors.
Take steps to close on minor items that suit the prospect as you walk around the property. It makes the final close much easier.
Nothing is agreed until the prospect has documented their intention in writing and supported it with some form of deposit or bond. Give due regard to local laws and legislation here as it may stipulate how monies are to be paid and when.
Always follow through on any contracts or terms of documentation. Never assume that the solicitor for the parties will do it for you.
When in any doubt regards any information, seek the answer from the correct sources before relaying it on the parties involved in the sale or lease. Failure to have accurate information can create legal problems and actions. That can be expensive and it will also waste a lot of your time.
These are some important steps to dealing with and checking out the prospects that you come across in commercial real estate. If the prospect appears less than honest or open, it is better to exercise caution and care before releasing information.
