Ms Ashley is my client whom I had helped to rent out her private residential property. She is, hence, an existing client.
She and her partner owned a very good industrial property (a B1 industrial property at a very good location) which has been providing them with good rental yield and a stable passive income.
However they decided to cash out on the industrial property and hence engaged Calin Chong Property (and a few other agents) to sell the property in what we called, “open listing” method.
Open Listing for this property
This is not an optimal arrangement as many agents are doing the same listing for you. While it might appeared to be advantageous on the surface to have more agents working for you, in reality, it is NOT really be the case as the property agents will actually spend less time for you and advertise less for you too as they are not assured of the returns. More is not always best. It is better to stick to an exclusive arrangement with your agent.
Nevertheless, that’s Ms Ashley and her partner’s decision and as a professional property agent, I will still do my very best for them.
High Asking Price
One challenge for this transaction is the high asking price. In fact the asking price exceeded the highest market price at the point of time.
The reasons they dared to do so were two fold. They had bought the property itself at a high price so needed a high selling price to exit. Secondly, the tenant for this property was very stable, run a good business and was always willing to extend the lease without any issues. Hence, in terms of rental stability, the property offered a good investment.
As the location of the B1 industrial property was also pretty good, I did have a constant flow of viewings. That meant I was always able to arrange many interested parties to the property.
However, the sticky point is the failure to reach a price that Ms Ashley and her partner were willing to sell. Many clients made offers but were all rejected.
While agents dropped out, I continued to market creatively
Along the way, due to the determination of my clients to stick to the selling price, many other agents gave up and dropped out. They quietly stopped bringing clients to the viewings and then completely stopped advertising for them. The agents can do so as they don’t have an exclusive arrangement with my clients (this is an “open listing”).
I, however, continued to carry on the work. I used digital marketing. I door knocked on other industrial properties to look for owners and tenants willing to invest on another property.
And I kept bringing new clients to view the property. In the meantime, the tenant of this property just renewed their lease for another 2 years. This led to Ms Ashley to further bring up the asking price even higher !! (she is a wise investor as even if she did not managed to sell the property, the income from the rental is a good passive income).
After about 6 months, I finally found a buyer who matched the high asking price. The buyer recognised the future value of the property and the good constant flow of current income. It was also the right time to get involved in the industrial property market as it was starting to get very popular (after the government announced yet another round of residential cooling measures and higher Additional Buyer Stamp Duties).
Highest PSF for B1 Industrial Property
The deal closed with the highest price per square foot (highest PSF) for an unit in the industrial building.
A client for life
The important lesson for me in this deal was the need to be persistent and to display perseverance and always be working hard for the interests of my clients. Even if the circumstances seemed difficult and the clients’ demands for a high asking price are tough to meet.
It was a most satisfying deal for all parties (I love such win-win deals).
Today, Ms Ashley continues to be a regular client of mine. She has even left me a positive testimonial in this web site !
She continues to invest in private properties and would always consult me for advice on the property market. She continues to buy and sell and rent properties through me. A client that will always come back to me is always a very happy thing for me.