- August 11, 2014
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Our marketing process focuses on generating the highest price for a property based on current market conditions. We tailor the sales process to the specific property and to the targeted buyer. In a flat or escalating market, we have found that our bid process generates the highest price within 12 to 20 weeks, although we can shorten this process to get to the market sooner. The process begins with the execution of our listing agreement.
Substantiate the Offering Price
Once we have our listing agreement with you, we will conduct a detailed analysis of the operations of your property to ensure our underwriting has uncovered every opportunity to support the highest valuation possible. It is not uncommon for other brokers to develop an operating price by applying a low cap rate to an unsubstantiated estimate of cash flow. We make sure your property has hard numbers on which to drive up bids.
We support your price with unleveraged returns and proper sales comparable. We believe this approach creates true value for you, our client, at the highest prices possible.
Prepare Marketing Materials and Generate the Targetted Prospect List
once we are sure of the value of your property, we create effective, Internet-based sales material, unlike any other broker in the industry. Our buyers appreciate the complete Internet-based packages and supporting documentation, as this allows them to quickly and effectively-analyze your property. Material includes:
The Marketing Flyer: Our database the largest in Canada allows us to select a targeted buyer pool to quickly market your property. Rock creates an attractive, 2?page marketing flyer, which introduces your property to the market. Depending on the nature of your property, and who is likely to be interested in it, the flyer is sent to between 50 and 1,000 apartment investors. Our target list usually contains 50 to 100 companies that either own property in the area, or have expressed an interest in purchasing assets in this area.
The e-mail, fax, or mailing document includes a summary of the property, photographs of the property, and a link to the ROCK website. At www.rockadvisors.ca, the investor can sign into and accept a Confidentiality Agreement, receive a password, and then download the marketing package on your property.
The Marketing Package: We produce a detailed marketing package that is only made available to investors after they sign a confidentiality agreement at our website. This document contains all the details an investor requires.
Supporting Documentation: We provide details of your property including rent roll, utility invoices, taxes, contracts, etc, to show the true value of your property. These details are password protected and available for download by the buyer once he or she has signed a confidentiality agreement.
Client Approval: Before we proceed with marketing, we review the marketing materials with you, our client.Once approved, within 24 hours, the entire package is posted on our website, ready for distribution. High quality materials and presentation are expected by institutional and sophisticated buyers.
Marketing, Solicitation & Property Tours: We then proceed with the hard marketing of your property, as follows:
Marketing: The target market receives emails, faxes, and mailings, with our initial brochure that highlights the investment.
Phone Solicitation: Our Sales Representatives phone every prospective buyer on the target list, describing the investment and gauging their prospects interest.
Property Tours: During this period, prospects are invited to tour the property and the locale. ROCK personnel use this time with the client to market and sell the offering, but we also use this time to qualify the potential buyer?s experience, finances, and their approval process.
Client Reporting: Throughout the marketing process, we report back to you, the owner, on the status of our marketing activity. This report will summarize which buyers have signed confidentiality agreement and will give an update on each buyer.
Bid and Interview Process
Once interested purchasers have toured the property and analyzed the data, we set a date to call for bids. The bids are immediately submitted to the owner for their review. We then recommend what we feel are the strongest 3?5 bids and have you, the client review them. We will then meet with you to discuss the bids. We then do a best and final phone or face?to?face interview round between the favoured prospects, and then you select the buyer.
This process puts the negotiations in a competitive environment, and makes the prospective buyer compete on terms as well as with price.
Typically, ROCK plays an active role in the due diligence process. On your behalf, we accompany outside inspectors and contractors to observe their investigations. It is hard to believe, but buyers sometimes try and overstate project deficiencies in an attempt to lower the price. We have found that if we accompany the third parties at the property, it is more difficult for them to make unsubstantiated claims. It also lets us know immediately if the buyer finds any real structural or environmental challenges.
Closing the Deal
Typically, the lawyers for the buyer and the seller run this process. However, we are ready to assist to help navigate to a successful closing.
The Benefits of Listing With SVN Rock Advisors
We don’t just want to list your building, we want to sell it, and we want to sell it for the best price available. The way to do that is to provide potential buyers with rock solid information about your property, and to target your property to the best buyers who are looking for the type of building you are selling. By listing with ROCK, you gain deal certainty. We have a demonstrated ability to sell, a demonstrated track record in Ontario and a demonstrated knowledge of the markets to target for apartment buyers. We also have the ability to qualify bidders but, most importantly, we drive the process. We raise interest and we get your property out into a competitive environment where the best prices are available.
To find out more about how we market an apartment building to get the highest price, contact our marketing experts.