Great brokers know how to use information to benefit clients by Mark Schnurman

One of the biggest mistakes that brokers make is thinking that they are adding value clients when they really are not. Sending listings out to thousands of clients, while it has its place on occasion, is not a very valuable approach and certainly is not targeted. Brokers are purveyors of not only information but advice and that comes at a price: commissions. For brokers to maximize their incomes they need to improve the quantity and quality of not only their information but their advice. It is imperative that brokers ensure they provide accurate and complete information and superior advice.

Information can be as simple as knowing what is for sale or available to lease where along with knowing the associated metrics. It amazes me how often brokerages send out incorrect information. At Eastern, we have a process to ensure the accuracy of all of our information before clients see it. While, there is certainly value in this information but it is only part of the story. The true value that brokers add is in advising their clients on what the information means.

A too simple analogy will elucidate the distinction. Knowing that a tomato is a fruit is information. Possessing and sharing the wisdom to advise people not to put tomato in fruit salad is advice. Great brokers know how to use information to benefit their clients. They do this in two main ways:

First, brokers are able to use information on particular properties to identify the best use for a property. Whether this is by identifying a different use, development opportunity or a chance to increase rents it is important for brokers to help their clients see the upside in properties. At Eastern, we have the added benefit of having analysts with years and years of experience assist our brokers in this process, enables them to unlock hidden value.

Second, brokers, with their fingers on the pulse of the market, are able to spot trends before others. Brokers, both individually and collectively, come across more information than anyone else in the market and can use that information to benefit their clients. Knowing what will happen before it does is an invaluable tool and can benefit clients immensely.

The best brokers do not throw information, whether by exclusive or off-market listing, against the wall. Instead, they learn about what their clients are looking to accomplish and match that with their property and market level knowledge. Knowledge is power (KIP) but the ability to translate that into targeted advice for clients is priceless!

Mark Schnurman is chief sales officer and principal at Eastern Consolidated, New York, N.Y.