Commercial property is quite difficult to sell or lease especially with the downturn in the financial world. People have turned to property agents as it gets more difficult and stressful. Qualified agents get to handle all the details from the listing to sale/leasing of the property. However, even with this, there might be some setbacks and difficulties. Commercial listings in Canada are not any different from the rest of the world.
So what might happen for commercial listings to expire?
Below are some of the reasons:
· Overpricing of the property by the agent- since you handed everything to the agent; he might go overboard and put an unusually high price, one that is too high in relation to the location of the property.
· You as the vendor had impractical expectations- this translates to the agent as he or she does not want to disappoint you. With property sale or leasing, you need to be patient so that you can get the right buyer at the right price.
· Using the wrong method to market and sell/lease the property. Commercial properties are different and they have different ways of marketing. If the wrong method is applied, then the listing will probably expire as the right people will not get to know about the property.
· Market feedback and comparable pricing information was not relayed to the vendor of the property. What the market says and competing prices are invaluable information to the seller as he or she will be able to change the price, if needed, to suit the market.
· As the agent is in charge of the whole transaction, some have been known to fail in delivering on market, negotiations and overall sale/lease of the property. This can be quite serious as you’ll have wasted your resources on a service that is not being provided.
Now that the core problems have been realized, solutions need to be shown so that Commercial listings in Canada can do much better in the market. When dealing with these different situations, have in mind that due to fluctuations in the property market, patience is required.
· How to deal with unfeasible expectations on the part of the seller- a seller’s expectations depend on the information he or she receives from the agent. The agent should give information related to the particular property and if he or she sees that the market is different, it’s time to think about adjusting some of the prices and details of the property.
· Dealing with overpricing- this can happen on the part of the agent as he or she might be gambling with the vendor’s flexibility. This can result in a downward spiral in the market as prospective clients might look for other properties more reasonably priced. Overpricing might also happen as a result of inexperience in the property market. For the property agent; if you’re not familiar with the market, it’s alright to ask for help from one of your colleagues as they’ll give the right price.
· Dealing with information relaying- the solution to this is simple; as the agent, give all the information about the property and market to the vendor. Since he or she has all the information regarding the entire transaction, he’ll be able to make the right decision.
· Having knowledge about the market will give you a better idea on what should be done in terms of pricing and marketing of the property. On the part of the agent, he or she needs to do the proper research regarding the market so as to give the right price for property. Commercial listings in Canada need also to have the right research done so as not to chase prospective buyers away.
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