Statistics show that around half of all commercial real estate brokers will leave the field in the first three years. Life as a broker is tough. However, there are some common mistakes that are easily avoided. From failing to make use of commercial real estate management software to perceiving fellow brokers as competition, these are the top mistakes we see commercial real estate brokers make again and again.
Failing to Systematically Manage Real Estate Prospecting and Client Relationships
Sparking connections with potential clients and building warm relationships is integral to the success of any commercial real estate broker. However, a successful broker takes a systematic, organized approach to managing their real estate prospecting and client relationships.
Failing to systematically manage your real estate leads and prospects is a fast track route to overwhelm with organization, lead generation, and communication with clients. Client relationship management (CRM) tools can help take stress out of these important business fundamentals by automating and streamlining lead generation and CRM processes.
There are a number of CRM and real estate prospecting tools that are ideal for helping you to generate new real estate leads and effectively manage your current clientele. CRM tools, such as Salesforce, allow you to organize and manage all of your leads and clients in a database. Such tools can be used to help you easily find client information, automate your cold calling process, and analyze your business metrics. Ensuring that your commercial real estate database is organized with real estate leads to follow up with means that you can systematically build up your clientele and rely on a fall back list of potential leads to turn to when business is slow.
With Reonomy, we take the headache out of real estate prospecting – allowing you to easily source potential prospects for cold calling. Reonomy lists millions of properties that can be sourced based on property type, mortgage maturity date, size, location, and more. Reonomy also provides accurate contact information for property owners, giving you direct access to millions of real estate professionals.
A commercial real estate database provides you with a systematic approach to sourcing and managing real estate leads for sellers and listings. You have the potential prospects and opportunities clearly mapped out for you. Using a database, which pools extensive real estate data, also takes the hassle out of having to manually source prospects and find reliable contact information for property owners.
Failing to Use Commercial Real Estate Management Software
Beyond CRM and real estate prospecting software, your commercial real estate business can be made all the more efficient by investing in a range of useful tech tools.
A professional website is a necessity when it comes to presenting your services in a professional light to potential clients. Directing potential clients to your website in your cold calling emails can help them get a sense of your expertise. Setting your website up so that it includes testimonials, an informative blog that simplifies real estate data and client processes, and a homepage that explores how your business tackles your target clients pain points will go a long way in helping you build trust with potential clients.
WordPress is an easy-to-use website builder that allows you to design a chic interface and SEO optimize your copy and content so that you can easily be found by potential clients. Getting on social media and building up a strong web presence is also important for generating new leads.
Many brokers also make the mistake of not making use of commercial real estate management software. Commercial real estate management software can be used to help simplify, automate, and enhance several of your business processes.
An investment analysis and property valuation platform can be used to help you to streamline your cost analysis and present your figures clearly to potential clientele. Valuate is a great example of this. Valuate’s commercial real estate app enhances investment analysis and expedites asset valuation and maps out your evaluations in graphs and charts that you can share with potential sellers or buyers. Valuate’s commercial real estate management software works like an upgraded version of Excel. Valuate will help you swerve the time consuming and potentially error-stricken path that comes with pasting your cash flow analysis into an Excel spreadsheet for presentation.
Failing to See Beyond the Competition
Investing in supportive business relationships with other brokers is also important to help you succeed in the business. Some brokers make the mistake of trying to go it alone and perceive other brokers as competition, rather than as sources of guidance and expertise.
Relationships with other successful brokers will always be beneficial, providing you with the support to keep building your business, while offering advice and guidance on how they grow their own.
You can build up strong relationships with fellow brokers, or find potential mentors, by attending local networking events, looking into mentorship training, and reaching out to other brokers in your area. Rather than perceiving other commercial real estate brokers as a threat to your business, see what you can learn from how they do business. What are they excelling at? Each broker may have something new to teach you about how to generate real estate leads, how to boost your marketing efforts, or how to build up a strong commercial real estate database.
Failing to Work Towards Becoming an Expert
While every good broker depends on their charm and resourcefulness to form and nurture connections with clients, many brokers overlook the need to continue to build on their knowledge of the market. Working on expanding your knowledge base and ensuring your aware of current market trends will ensure that you stand out among your competitors.
Ensuring that you are a credible specialist in your field of knowledge will help potential prospects gain trust in you and your business. Working towards becoming an expert in the field will help you source the best deals for clients and will strengthen your client relationships as clients come to rely on you as a go-to source of information on real estate data.
Avoid These Common Mistakes
Falling into these common pitfalls prohibits many great commercial real estate brokers from excelling in their field. By ensuring you make use of commercial real estate management software, systematically managing real estate prospecting and client relationships, deepening your knowledge base on real estate data and market trends, and looking to other brokers as the best people to help grow your own business, you’ll help ensure you always have an edge on your competition.
Looking to find out more about how you can use Reonomy to simplify your business processes as a commercial real estate broker? Check out our past post on the topic.