By Dan Bates
A couple of months ago I wrote an article entitled, So you want to become a commercial Realtor. I received many favourable and complimentary voicemails, emails and comments about the article. Its purpose was to provide those getting into commercial real estate or maybe changing companies with some assistance about the type of brokerage that would best suit their needs.
So now that you’ve decided what company is best for you, the next question in the life of a commercial Realtor is, “What does it take to be successful in the commercial real estate environment?”
I want to demonstrate some attributes that I have seen over the past 23 years.
Rule 1: Listen, speak, listen – We were given two ears and one mouth for a reason. Many salespeople, while they know they should listen, seem to just want to talk most of the time. One of the best negotiators I know once taught me the “power” of listening. It is rare for a client to actually be at the negotiating table, but in this one particular deal, he insisted on being there near the end to bring it over the goal-line. Despite my efforts to let me do my job, he insisted on being there.
After several minutes of us haggling over various clauses in the agreement with the other agent and his buyer, we were down to the final item, price. At that moment, my client, the seller, gave me the pre-arranged signal (his arms folded) that meant for me to not say another word. He wrote down a price on a piece of paper and slid it across the table to the buying agent and his client, without a word; not one word. The agent and his buyer then talked, asked questions, left the room, came back in, talked and tried negotiating and everything else. For probably 20 minutes my client and I just sat there in total silence. Those 20 minutes seemed like hours as I listened to the buyer and agent negotiate against themselves and then agree to the price written on the paper. It was the most uncomfortable 20 minutes, but it worked for my client.
Rule 2: Work ethic, work smart – I have never met a successful agent who did not have a good work ethic, in conjunction with working smart. Smart in my opinion is smart management of time, our only asset as agents. Take a time management course to really find out about how you are managing your time. Most of us believe we are good time managers, but most of us are not. Remember, our business is paid strictly on commission so protect your time wisely.
One of the top agents in the business, for whom I have great admiration, makes five to 10 times more than a lot of very good agents I know. As an experiment, while I was in the midst of doing a deal with him, I tried to befriend him, hoping to engage him in a conversation (during business hours) about why he is so successful. He wanted nothing to do with any conversation outside of doing the deal. He handled me with the utmost courtesy and professionalism. Some months later we met at a social function and he was the most congenial and social person you’d ever want to meet.
Rule 3: Know your product, know your market – Always be prepared to speak about your product and the market, but bear in mind that you may not know it all, all the time. At this point, never be concerned about “not” knowing. Tell your client that you do not know, but will find out and get back to them. Then get back. Trying to pretend to know something to someone who is spending millions of dollars seldom works.
Rule 4: Dress for success – While this is an old saying, it especially holds true for commercial real estate professionals. Today many professions are doing business without a suit and tie. Lawyers and accountants who traditionally always wore a suit and tie are opting more for the “smart casual” look. I personally would prefer to not wear a tie, but in my years of commercial real estate I’ve learned that when pitching for a major piece of business I need to dress for success. Will that alone get me the business? Absolutely not, but if my competitors are dressed for success and I am not, my chances of earning the assignment are greatly reduced.
Rule 5: Always be on time – In the 10½ years since I have owned my own firm, this is the most preached subject during our sales meetings. Your clients are business people. They have a lot more to do in a day beyond meeting with you. When a salesperson is late, the message is that they are more interested in their own “now” than the client’s “now”. If you want to improve your chances of signing a listing, a mandate or a successful showing, be on time. Actually, make this rule No. 1.
Dan Bates is the president/broker of record for Binswanger Hectare Commercial Realty in Mississauga, a boutique commercial brokerage with a global platform with Binswanger USA, since 1978.
