Make the Informed Choice - Request a PTM Before you Hire a Broker
Before entering a new relationship with a broker for your commercial investment property, it is essential that you receive a Proposal to Market (PTM). This document is sometimes called a proposal for real estate services, or a project proposal. Yet it remains a fact that no matter what you name it, many investment property owners don't know the importance of this document, why they should ask for one, and how a proposal for real estate services empowers them to make an informed decision about the disposition of their asset.
A Proposal to Market or proposal for real estate services is an essential first step if in you’re considering bringing your commercial property to market
Why Ask for a Proposal for Real Estate Services for Your Investment Property?
The PTM will determine how best to market/promote your property. The document will suggest the appropriate price-point to best compete in your asset class. In short, the PTM provides the property owner with well-researched information about their asset so that they can make an informed decision before they commit to working with a broker.
How a Proposal to Market Works
The role of a Proposal to Market is to extract the value indicators from comparable market sales. Here are the steps that go into creating a proposal to market.
1. Rent Survey
Are your rents at, above, or below market value? I’ll provide you with a lease analysis for each unit type in your property. This step will be instrumental in determining how to advertise the property. For example, protocols associated with added value, the pride of ownership, cash cow, or a combination thereof may be implemented to provide owners with the best net return.
2. Extracted Market Indicators
A grid analysis will be created for all sold, active, and pending comparable properties within your geographical area. When applied to your property, these metrics create the value proposition. They are:
Are you interested to know what your property transaction zone is?
Call me for a no obligation, confidential Proposal to Market. You'll come away empowered with information for to make a wise choice!