Before you list your property it’s important to consider asking price and who will market your property. You should also determine how and where to market your commercial property before making any decisions or signing any contracts. Here are some things to consider as you get your commercial property ready to sell.Initially, many commercial property owners think selling their property by owner will save them the commission expense. Unfortunately, selling your commercial property by owner may not get you the highest possible purchase price because you are limiting the ways in which you can market your property. Many property owners selling by owner may place a “For Sale” sign on their property and list it on a few online listing services. But had they listed it with an agent, the owner could have taken advantage of the number of other paid listing services only agents have access to as well as organizations real estate agents have memberships, giving them contacts that increase the commercial property owners possibility of a sale. When your commercial property has more exposure, it will not only sell faster but has a better chance of selling for a higher price.Another benefit of hiring an agent is that they field phone calls from potential buyers who may or may not be qualified to buy your commercial property. Real Estate agents can screen pre-qualified buyers and market your property. Agents are also a great buffer during the due diligence period and the time leading up to closing. They ease the burden on the commercial property owner by communicating on their behalf with the purchaser, lender, title company and attorney.When it comes to commission, agents are typically paid a percentage (between 3% and 10%) of the selling price. Before you sign a listing agreement it’s important to know that all commissions are negotiable. The type of property, its location and how sellable it is all play a role in determining commission percentage. For example, a strip mall that’s mostly empty in an economically depressed part of town would be considered hard to sell. So a higher commission on such a property provides the agent a better incentive. The higher the commission, the more favorably a real estate agent will present it to potential buyers.When you get ready to hire a real estate broker to represent your commercial property, it’s essential that you hire a commercial real estate agent rather than a residential agent as commercial and residential properties are two totally different products requiring different approaches to marketing. Good commercial real estate agents know the current market trends and use this to market your property to the most suitable clients. Commercial properties need multi-page marketing brochures that provide buyers with pricing, demographics, NOI calculations, CAP rates, rent rolls, traffic counts, income & expense statements, topography maps, site plans, property and aerial pictures, PIP lists and other items. With such precise information, potential buyers are more likely to make an offer. Knowing how to calculate an appropriate asking price for your commercial property based on its location, current economy and market trends is very important and is a good commercial real estate agent’s area of expertise. Experienced commercial real estate agents protect the interests of the party they represent when closing commercial real estate transactions which are much more in-depth and challenging than residential transactions. Finally, experienced commercial real estate agents have established contacts in commercial lending that can help speed along the closing process.
Listing Your Commercial Property With a Commercial Real Estate Agent
Beware of Investment Opportunities Promoted by Social Media
Almost any business these days has a Facebook or a Twitter account, and the public is accustomed to accessing information just about anyone or anything, including businesses, through their social media accounts. But with the advantages of social media also come disadvantages –this is particularly true in the case of making investment decisions.In a recent Reuters interview, the FBI expressed its concern with fraudulent stockbroker’s use of social media to attract potential investment victims. Like a business or person tweets or gives status updates, it provides the platform for fraudulent stockbrokers to taut the high earnings and low risk of their investment opportunities. While these tweets or updates can be completely false, the savvy way that the stockbrokers use social media helps provide an official front to the investment scam. And the constant reminders of how good an investment opportunity is and how much other people “like” it (including other involved in the scam who leave false positive feedback about the scam) can eventually mount the pressure on a potential investor to take the plunge.Investors should be wary of following investment trends on Facebook and Twitter, especially if the one tweeting is an investment professional. Integrity Research Associates reports that half of surveyed investment advisement firms who are registered with the SEC have established written policies that forbid their advisors from using social media for business purposes. While other firms have increased their use of social media, investors should still not make investment decisions based on information gathered from it.The high pressure, immediate need to invest created by social media is usually bad news for investors, and can be a sign of potential investment fraud. Investors should always take their time when deciding how to invest their money.There are several overall tips to safe investing when it comes to social media:• Don’t fall for hype. Just because an investment is widely talked about or liked doesn’t mean it’s a good investment for you. The hype surrounding an investment might also make you feel pressured to invest quickly, but the life of your investment will outlast how popular it is one day on twitter. Take your time deciding on how to invest your money.• Don’t be wooed by an online investment advisor. Even the most simply investments take some time for potential investors to understand and for advisors to explain. This explanation is best done in person, so that you can review terms together and ask questions. Questions the advisor can’t help you with should be reviewed with your lawyer or other investment professional.• Know that online credentials can be faked. While an investment professional may have an active and legitimate looking firm online, the reality may be much different. The best way to know if your investment advisor is a good fit for you is to check their professional credentials. You can do this on FINRA’s BrokerCheck, available for free on their website. BrokerCheck will let you know if and how your advisor is accredited, and if they are in good standing with regulatory boards.While investments touted on social media may seem like good options for your investment portfolio, investments should always be carefully researched to ensure you don’t give over your hard-earned money to an investment scam.
The Essentials of Marketing, Advertising and Fishing
As a little girl being raised with three Uncles fishing was a huge part of the weekend activity. There were many weekends when the whole “Webb” clan could be found at Hayesville Lake fishing, and that is where I learned the basics. You have to have the necessary equipment, granted this varies based on the type of fishing you are doing, but you must have the right EQUIPMENT none the less. BAIT is the second necessity; this too varies depending on type of fish you are going for. Third is the right LOCATION and last but definitely not least you must have PATIENCE, TIME AND ENDURANCE! These are the necessities of a successful fishing trip and there is a direct correlation between the necessities of successful fishing and the necessities of successful advertising and marketing.
EQUIPMENT: In advertising you must have the proper equipment. No, I’m not talking about software to make your own ads or to build your own website. I’m talking about having a marketing budget built into your business plan. This marketing budget should be reviewed at the minimum bi annually but ideally annually. How much should be in your marketing budget? Well, according to Sba.gov:
“As a general rule, small businesses with revenues less than $5 million should allocate 7-8 percent of their revenues to marketing. This budget should be split between 1) brand development costs (which includes all the channels you use to promote your brand such as your website, blogs, sales collateral, etc.), and 2) the costs of promoting your business (campaigns, advertising, events, etc.).”
For more marketing budget helps for small businesses from sba.gov check the resource box of this article.
Another great piece of equipment is finding someone who understands marketing that will guide you through the process. This person should be fair, honest and have a sincere desire to see your business succeed. And yes, you can find that in an advertising rep, and once you do, my advice is to treat that person as a valued friend or employee even if you don’t have them on your payroll! And remember not every advertising rep that walks through your doors will fit this description.
BAIT: When you are going fishing you have to find bait that attracts the kind of fish you are looking for. Worms and corn work pretty well for trout, it’s chicken liver for catfish and herring if you’re going fishing for the halibut! In advertising your bait has to be tailored to your potential customer as well. Your commercial whether print, television or radio should be appealing to the customer you are after. And just like when your fishing if it doesn’t have a hook inside it’s not going to work! A good ad always has a hook, a call to action, something that will spur your potential client to pick up the phone, to come to your store or at the very least visit your website. Without a hook the best bait in the world becomes nothing more than food for the fishes!
LOCATION: You wouldn’t go fishing for catfish in the Atlantic Ocean nor would you go fishing for a Marlin in Cartoogechaye Creek in Franklin North Carolina, and if you did, you would only be setting yourself up for failure. That same principle applies in marketing. It is absolutely imperative that where you choose to cast your well baited hook be the same place your potential customers hang out. For instance if you have a women’s apparel shop where the target customer is women 25-64, placing advertising on an album rock station or heavy metal station whose demographic according to radioadvertisinghome.com is men 25-44 would be just as much a waste of your time and money as my Uncle Timmy fishing for a Marlin in a small creek in the middle of North Carolina! Another major consideration when choosing location is how many of your potential customers are there in that pool. Would you choose to fish for catfish in a pond of 3 catfish or would you rather fish in a pond that has 500 catfish in it? Well the same applies when picking your stations or mediums to advertise in. There may be two TV stations in your market that targets the same demo the decision lies in picking that one with the most eyes watching! This may mean paying a little more per ad but let’s face it you can fish in a pond for free that has no fish in it all day long and you are guaranteed not to catch anything. I’d much rather invest my money in a pond that has actual fish in it!
PATIENCE, TIME AND ENDURANCE: How many times in your life have you gone fishing and come back empty handed? If you are a dedicated, truthful fisherman you will admit there has been many and probably too many depending on how you look at it… With advertising it is the same. Don’t expect to receive ten calls the first time your ad airs, or even one! The truth is, the consumer has to build confidence that you are a real business before they will trust you enough to take the bait. That confidence generally happens in the first 3 months. And then you have to keep the bait fresh to keep them biting. That means running the same commercial for years at a time would be the same as using the same worm over and over again after it is dried on the hook. Not a good idea. Neither is putting a worm in the water just to reel it back in and head home. But, keeping a freshly baited hook out there is the best way to keep your freezer full and your business growing!