*Listing Proposals
One of KJF Partners’ Core Values is:
“We are driven by our personal commitment to create value for our investors, tenants, teammates and brokers.”
To serve our broker partners, we send occasional emails that focus on lessons learned through my brokerage history or that I notice from my current role on the principal side of the business.
Brokerage is a very challenging business and, obtaining quality listings is a proven path to consistent earnings and a great career. While there are many steps in obtaining proposal commitments, our focus today is on some actual proposal communication targets.
I’ve recently talked to several younger brokers that have been concerned about their proposal to list success ratio. In short, they are losing more deals to competitors than they should losing. I believe the goal when presenting a proposal is: obtain a listing at the price and terms that you recommend. Below are my thoughts on important elements of turning proposal commitments into saleable listings:
Every part of your proposal should have a clear purpose.
In this age of never-ending information platforms, I’ve noticed that some proposals have a lot of “stuff” in them that doesn’t have a clear purpose. In my opinion, including superfluous information creates the risk of detouring your client’s attention to things that may not serve your purpose. Bulk information does not earn a listing so, if you are not clear how every part of your proposal helps achieve your goal, consider trimming some fat.
Your proposal must clearly prove why you, your team, and your company are the best choice to sell this property.
Don’t assume that because you do a great job with the numbers or the comps that your prospect will automatically believe you are the best brokerage choice to sell or lease this asset. You must sell yourself in a way that creates a high degree of confidence, with your prospect, that you are the wise choice to accomplish the client’s goals. Frequently, your client’s goal may be to close escrow for the most money possible, within their time constraints. Effectively using your, (or your team’s), track record, problem solving ability, marketing penetration, and access to premium buyer pools can all help you show the client that you are their BEST CHOICE.
Your proposal must justify the pricing that you are recommending and convince your prospect that listing at that price will attract the buyers that will eventually pay the most for the property.
Using closed and on-market comps are the common way to achieve this and, as the market shifts, on-market competition may be the most convincing approach. Sale comps are dated and, the buyers that purchased those properties are no longer in the market. Their needs are already satisfied. Your prospect’s property will compete with the properties that are currently available on the market so, showing your prospect that you priced the property to compete with current inventory will help you obtain well priced property listings.
Your proposal should press on your client’s existing motivation.
Understanding why your client is considering a sale is important, and helping your client remember those reasons should increase their urgency to move quickly. Hopefully, that urgency will assist them in avoiding what they worry about or, in creating the positive outcome they desire.
Although an effective proposal communicates several things, I have learned that convincing the client that you are the best brokerage choice for selling their property, is the most important element that you can accomplish. If you don’t do that, justifying price and pressing on motivation will only help the broker that wins the listing. As a principal, I am more likely to list a property with someone that I believe is most qualified to sell it even if they haven’t done the best job in pricing the asset. I am going to list with the person that has convinced me that they are my best choice.
Learn how to present yourself as that best choice and your proposal to list percentages will surely improve. Also, remember that every client contact, especially during the pre-proposal process, is an opportunity to advance that perception. Make every “client touch” valuable.
Happy Hunting!
Joe
Joe Faris
KJF Partners, Inc.
Cell Phone: 949-275-5038
Email: jfaris@kjfpartners.com
Website: www.kjfpartners.com
PS: If you have subjects that you’d like to see become future topics for This Principal’s Perspective, hit reply and let me know what your thoughts are.