When it comes to selling, and leasing commercial real estate you don’t want an overpriced listing unless there is some potential to adjust the price and attract enquiry. The fact of the matter is an overpriced listing wastes your time as the agent, but perhaps more importantly it also wastes the time of the seller.

Some clients and property owners think that the agent’s job is to sell or lease the property at the price that they are looking for. Nothing could be further from the truth. It is the agent’s job to convey the facts of the market to the client so they can understand how to resolve their property challenge at the best price or rental given the current market circumstances.

Many clients will not listen to the agents assessment of the current property market; or they will choose to selectively accept only some of the issues that they are told. If you believe that the client is reasonably motivated to sell or lease the property then an overpriced listing (within reason) can be acceptable.

So the message here is that you can accept an overpriced listing within reason and if you see a way through the challenge. That being the case here are some strategies to adopt as you move through the agency period.

1. Always show the client clear market evidence regards comparable properties nearby. That should include the asking price, the asking rental, the achieved price, the achieved rental, and the time on market. You should also include details of property improvements as they apply to each particular property. There may be differences and enhancements which distinguish that property above those in the local area.
2. If the client wants you to market their property at the inflated price, then seek vendor paid marketing funds to support the process. If they really believe in the price, they will or should believe in payment of funds to support the marketing campaign.
3. Alert the client to the types of enquiry that’s out there at the moment. Explain to the client that the levels of enquiry today are limited and perhaps are just 1/3 of what they used to be. This then says that each enquiry has to be captured and converted. Waiting for the special person that will pay a top price or a top rental can be counterproductive and over saturate the market with the relative listing. A listing becomes stale within about six weeks; it simply dies as a listed property. If you cannot get genuine enquiry to the property during that time and undertake a few inspections then you have wasted the critical marketing window of time. The client has to adjust their price.
4. After every property inspection give feedback to the client of the comments made by the inspecting party. This becomes third party evidence and is quite relevant to helping you convert the client to more realistic terms of sale or lease. When the opportunity presents itself, seek approval to reduce the asking price or rental. This should be done at least every two or three weeks. If the property is being offered for sale by auction, tender, or expressions of interest, then the pricing process is dictated by the market. In that case it is essential that you give feedback to the client from every inspection and every enquiry.
5. The history of sales or rentals in the local area can be trended on a graphing display or process. It is best to focus on the pricing and rental activity over the last two years and most particularly the current 12 months. This is evidence that the client would find hard to refute.

As a general rule you should not always take overpriced listings into your books. That being said, you should not always walk away from them either. It is a matter of strategy and belief in the client’s ability to be flexible and realistic with their property challenges.