Make an Offer Already – part two #cre
Image by NobMouse via Flickr
So, What Can a Commercial Property Seller Do?
1. About Buyers – We’re sorry to be the ones to have to tell you this; Buyers will always be fickle. What appears to work on the cursory showing may not actually do the trick. Savvy Sellers can offer to help the property better suit an interested Buyer by offering to add or remove an interior element, putting in more parking, work toward changing the zoning, etc.
2. About Inventory - Even if your property is the only one available of a particularly desirable size or location…see About Price #3.
3. About Price – Here’s another for the ‘Sad But True’ category; No amount of wanting to make a profit will get your commercial property sold for an above market price. It can be very difficult to accept the current value of your property when you look at what you’ve paid for it just a few short years ago, but the Commercial Real Estate Market Value is what it is, and since there is so much competition in this market most times it comes down to a matter of price. By pricing your property for the current market you’ll be putting your property in the most desirable position.
4. About Financing – The hardest thing to hear may actually be that you won’t get a pile of cash at the closing. Since banks are mostly NOT lending money for commercial properties a lot of sales are happening thanks to Seller Financing. This isn’t for everyone or every business, but if you’re in a position to offer some Seller Financing it could mean the difference between selling your property or having to sit on it for a few a more years.
5. About Financing and Price - Here’s something else to think about; when there is a Buyer interested in your property, if they are not a cash buyer or purchasing with some Seller financing, the property will need to pass the bank or SBA’s appraisal process. There are properties that are not ‘Comping’, meaning the lender will not loan the amount of money requested because it is over the value of the property.
-Note - We apologize if the above tends to rub you the wrong way. Believe us, that is not our intention. We think if you’re looking for a Commercial Real Estate professional that will candy coat and tip toe around to get your business we’re probably not for you. We want you to benefit from our market knowledge and experience so you can make the most informed decisions regarding the Sale and Leasing of your Commercial Property. After all, you don’t pay us to tell you what you want to hear, you pay us to get the job done.
Buddy Budiansky, CCIM and Ron Frederick, PA are commercial real estate professionals specializing the sales and leasing of properties in the Daytona Beach, Ormond Beach, Port Orange, Florida area. Email them at info@buddyandron.com.
