The Top Down Listing Strategy
By Peter Ciriello CCIM CBI
In a recent transaction I had the opportunity to meet a man who at one time was the biggest owner of housing in the United States. This person, whom unfortunately I cannot name (due to a confidentiality agreement I signed), taught me a way of selling commercial real estate that I previously never used.
As an agent since 2003, selling multifamily in Los Angeles, I was often trained by peers to talk about deals that were highly competitive (multiple bid situations) as achievements. When speaking to other brokers, I would often hear about these stories and think "that agent is good, he/she marketed the property well and was able to achieve a high level of interest." Well, this client, after spending 2 months with him and his family (his company) selling a trophy parcel of real estate, has taught me an alternative - and it is this alternative measure that I will champion for the remainder of my career. I call it the "Top-Down Listing Strategy" and the other way, I will refer to as "Bottom Up."
In my opinion, there is one main difference between top down and bottom up; who it's good for.
The one thing that most broker's never want to talk about to their clients is the fact that when you hire a broker, you're hiring someone who has his own needs. I am sure every landlord want's to believe that profession of commercial real estate brokerage is filled with agents who put the needs of their clients above their own, but sadly, I don't see that to be the way the majority brokers work in any of the markets I work in. So as a landlord, you will need to ask, "are my needs going to be primary, even with, or secondary to the needs of the broker I hire?"
Unfortunately, the way to determine the broker's hierarchy of needs is EASY to determine and these I outline in my article "The Commercial Broker Cheat Sheet" so I won't rehash them here.
The bottom-up strategy is good for agents, and makes properties easier to sell, and therefore is part of the broker's repertoire to consistently taut it as the "way to sell real estate." It is the top-down approach that means an agent will have to work hard, might need to cooperate fee with another agent, and is truly the best strategy for the Seller.
As an agent since 2003, selling multifamily in Los Angeles, I was often trained by peers to talk about deals that were highly competitive (multiple bid situations) as achievements. When speaking to other brokers, I would often hear about these stories and think "that agent is good, he/she marketed the property well and was able to achieve a high level of interest." Well, this client, after spending 2 months with him and his family (his company) selling a trophy parcel of real estate, has taught me an alternative - and it is this alternative measure that I will champion for the remainder of my career. I call it the "Top-Down Listing Strategy" and the other way, I will refer to as "Bottom Up."
In my opinion, there is one main difference between top down and bottom up; who it's good for.
The one thing that most broker's never want to talk about to their clients is the fact that when you hire a broker, you're hiring someone who has his own needs. I am sure every landlord want's to believe that profession of commercial real estate brokerage is filled with agents who put the needs of their clients above their own, but sadly, I don't see that to be the way the majority brokers work in any of the markets I work in. So as a landlord, you will need to ask, "are my needs going to be primary, even with, or secondary to the needs of the broker I hire?"
Unfortunately, the way to determine the broker's hierarchy of needs is EASY to determine and these I outline in my article "The Commercial Broker Cheat Sheet" so I won't rehash them here.
The bottom-up strategy is good for agents, and makes properties easier to sell, and therefore is part of the broker's repertoire to consistently taut it as the "way to sell real estate." It is the top-down approach that means an agent will have to work hard, might need to cooperate fee with another agent, and is truly the best strategy for the Seller.
