Negotiation Tips for Commercial Real Estate Agents

When the commercial property market becomes slower or tougher, the negotiations that you undertake as a Real Estate Agent become more critical. Every negotiation needs to be planned and optimized; practice will help you as the commercial agent convert more positive results from each and every negotiation.

In this property market negotiations occur at a number of levels, and not just at the end of the sale or lease process. Most particularly they are the negotiations:

  1. With the property owner at the time of seeking a listing
  2. With the property owner regards the marketing campaign and vendor paid advertising
  3. With the prospective buyers or tenants that make initial enquiries from the marketing campaign
  4. With buyers or tenants as you take them through the property as part of the formal inspection process
  5. With the prospective buyers or tenants as you move them to finality on a written form or contract or a lease offer.
  6. With property professionals such as solicitors, accountants, and financiers that may be involved in moving the property transaction to finality

All of these people have a vested interest in the property itself and a point to negotiate from. Some of these people act for your client so sensitivity is required.

The best commercial real estate agents will normally consider the alternatives of the parties prior to entering into the final negotiation. You have to know where the other party is coming from. This forward thinking allows strategies to be available should the negotiation become difficult or slow.

So the critical tips or processes involved in negotiation include the following:

  • Be prepared for the negotiation from the outset. This means that you need all the information about the property and the people at your fingertips should any unusual circumstances or questions arise.
  • When an unusual hurdle or problem develops, take the time to ask questions of the other person so you can fully understand their position. The more questions you ask, the easier it is for you to work through the particular challenge. This question and answer process is called a ‘Freudian Slip’ and is used by all experienced salespeople. With the right questions you will get the correct answer to the challenge that exists.
  • At the appropriate points of the discussion, take notes of any critical factors or key points. Written evidence will always help you keep the momentum moving ahead and prevent any disagreement in the property transaction.
  • All negotiations where possible should occur face to face and not over the telephone. Do not take the easy way out when it comes to discussing final details or counter offers. It is very easy for the other party to decline or refuse the offer when it is made over the telephone.
  • The best way to move the negotiation forward is on a written offer of contract or lease. If the negotiating party is genuine, they will have no problem in putting the offer together on paper. If on the other hand they are reluctant to sign a written offer for you, then you know that something is not as it appears.
  • Make sure you understand the legalities that apply to creating a contract or lease on the subject property. Incorrect or misrepresented documentation can create a minefield of problems as you move ahead. It is not unusual for litigation to be the outcome of poorly prepared documentation.
  • Remember who your client is in the process of the property transaction. The client has to be treated fairly and professionally given your relationship with them as the agent. You also need to follow their instructions. They need to be fully briefed on every stage of the transaction as it moves towards finality.
  • When a property contract or lease has been created and is enforceable, ensure that each stage of the transaction is suitably monitored, qualified, and satisfied. Far too many agents leave the transaction momentum to the client’s solicitor to complete and settle. This can see your negotiated deal stall. You are the person to follow and push the deal to finality.

Be prepared for the negotiation using these tips and others that apply in your local area given the property type. Use third party evidence and information to support your negotiation with critical facts that help maintain the momentum of the transaction.

How diversification with the help of equity and debt mutual funds is important in times of volatilit

The sharp fall in equity markets during the onset of Covid in March last year in 2020 was a wake-up call for investors to diversify their investments across sectors, assets and market caps. As the adage goes about not putting all your eggs in the same basket, if you invest your entire money in stocks of a single company or a single asset, you may end up losing money.

Some company stocks could be more volatile than others. Thus, it is a prudent decision to invest in a portfolio of different stocks. As a retail investor, it is complex and time-consuming to pick and manage multiple stocks. This is where equity mutual funds can help. Equity mutual funds invest in different stocks, thereby overcoming concentration risks and helping you minimize the downside risks.

The meaning of an equity mutual fund is a scheme that as per the scheme information document invests a minimum of sixty-five per cent of its net assets in equity and equity-related instruments.. It is suitable for investors with a high-risk appetite and a long-term investment horizon. There are different types of equity mutual funds such as categorization as per market capitalization; Large, mid and small cap, categorizing as per styles; value & contra, sectorial/thematic funds, ELSS (Equity Linked Savings Scheme) etc.

The current pandemic has shifted the focus of retail investors towards debt mutual funds. A debt mutual fund, also known as a fixed income fund invests in bonds and other debt securities. It invests in Treasury bills (T-bills), Government securities (G-secs), Debentures, Commercial Paper, Certificates of Deposit and others.

When you compare Equity Funds vs. Debt Fund, equity mutual funds generally have the potential of generating higher returns over the long-term. If you have a long term horizon and have a risk capacity to bear volatility, then an equity mutual fund is for you. However, if you are looking for a short-term horizon of less than three years, then you might consider investing in debt mutual funds that are relatively less volatile and has potential to help you achieve short term goals.

A portfolio mix of equity and debt mutual funds has potential to help to minimize downside risks due to market ups and downs. Last but not the least, a periodical review is needed to ensure that the assets you have invested in are aligned to your intended goals. As you near your financial goals, you may want to have a greater proportion of your portfolio invested in debt mutual funds than in equity mutual funds. Those who are starting to invest and do not have too many financial obligations and to investment for long term may choose to invest a larger portion of their investments in equity mutual funds.

Top 5 Unusual New Baby Presents

So you’ve been invited to a baby shower or a friend’s just had a new baby and now you have to decide on a gift. But with so much choice out there, where do you start? Here are my top 5 unusual new baby presents to give you a helping hand:

1. The Nappy Cake.

Before I hear you say ‘bleurgh!’ this isn’t a cake that you eat! A nappy cake is made from rolled nappies, arranged into tiers to resemble a wedding cake. They are then filled and decorated with useful baby items and make a fantastic centerpiece for the baby shower as well as a fantastic gift as they really have the ‘wow’ factor. They are available in different sizes and to suit all pockets so there’ll be something amazing for your budget.

2. The Baby Bouquet

Instead of the usual bunch of flowers, why not go one step further and give a bouquet made from baby clothing rolled to look like flowers? Usually combined with foam or silk flowers and foliage these can be difficult to distinguish from the real thing. Also, unlike real flowers, this gift won’t wilt and can be enjoyed until the arrival of the new baby when the clothing will come in very handy.

For those on a more limited budget, go for a sock rose. Make from 1 pair of baby socks they are rolled to resemble a single rose complete with leaf and then wrapped in cellophane & ribbon. Especially good as a small token baby shower gift if you are planning on getting a larger baby present after the baby has arrived.

3. Baby Sock Cupcakes

Just like the real thing, but kinder to the waistline! These cupcakes are actually made from little baby socks each nestled within a reusable silicone cupcake case and packaged in bakery boxes. Get pinks for a girl, blues for a boy or a combination of candy colours for a mouthwateringly visual treat.

4. Baby Smoothies

Want a unique gift? Go for a baby smoothie – so delicious mum-to-be will want to drink it! Looking like a fruity smoothie topped with whipped cream, they are in fact made from a baby sleepsuit & hat within a smoothie cup, topped with a weaning spoon. A very practical gift with fantastic & unique packaging!

5. Candy Box Socks

Strapped for cash but want to give a memorable & useful gift? Try Candy Box Socks – looking like a box of brightly coloured sweets, they are actually individual baby socks. These will definitely last longer than a box of candies!