There are three types of sellers in today’s market, each with unique behaviors and underlying motivations. As a broker, clearly understanding what the client hopes to achieve by selling is the critical first step. The second step is to think creatively to understand the value you provide, based on each seller’s situation and your ability to connect them with the right buyer. If we are clear on the client’s goal and confident of our ability to help them achieve it, then it makes sense to engage fully with each other.
Let us dig a little deeper into the three different sellers:
ON THE FENCE SELLER
This property owner has been considering selling for a while. While they haven’t pulled the trigger yet, they are in tune with the state of the market, closely observing and watching trends, and keeping tabs on the current global situation.
The uncertainty of the pandemic may be steering them towards the decision to sell. More importantly, they may now have a clearer vision of why they want to sell, and what they will do with the time and money freed up after closing. Complacency inhibits action. From my own experience I know I have stayed in less-than-optimal situations much longer than was healthy simply because I had no compelling vision of where I wanted to go next.
HIGHLY MOTIVATED SELLER
Market disruption put this seller under a high level of stress. Whether for personal, business or financial reasons, an elevated and exasperating level of distress fuels the seller’s motivation and focuses their efforts on moving on from the responsibilities and time commitment of ownership.
Whatever the underlying stressor – the transaction becomes central to achieving their ultimate end goal of relieving their pain.
A broker who can quickly deliver a qualified buyer who can actually close, is very valuable to this type of seller.
THE UNEXPECTED SELLER
In this scenario, the property owner is not actively marketing their property, and they may not even be thinking about selling. BUT when presented with an attractive and compelling scenario, the opportunity cost of holding the property becomes too great to ignore.
Just starting a conversation with an unexpecting seller creates the possibility of a beneficial outcome for them, which they may not even be aware of. It does not always end this way, but a great broker creates opportunities for their clients to say “YES”, and maximize the value of their property!
InSite brokers possess the ability to identify properties, whether they are on the market or not, and use imagination and market knowledge to create value for our clients.
A SUCCESS STORY
I approached a client who ran their business out of a 40,000sf industrial building they had owned for 40 years. In the last decade, their business had dramatically changed and they no longer needed that much space. They were left with a scaled-down operation in an area with increasingly high taxes.
We had a dinosaur of a building, unable to perform its original intended function but located near a transit center, in a TIF and Transit-Oriented District, in a community with a demand for affordable townhomes.
With the right amount of imagination and keen ability to identify both a need and solution, a sale of this property to a developer could benefit the Seller, Buyer AND the community at large.
Because of this mindset, we listed, our buyer closed, and they are on track to break ground in the Spring on a formerly underutilized property that can attract 40 high-earning families to stimulate the local economy. For me, it is most rewarding to play a role in creating a deal that is good for everyone.
We are in the business of creating opportunities and communities. The role of the broker is not just to facilitate transactions but to provide and cultivate potential for growth.
Not all transactions afford this type of opportunity or lead to the same success story, but it is exciting to redevelop a property into a higher-value use that transforms a neighborhood and ultimately, benefits everyone involved.
Learn more about Ross Goldstein.