Selling a commercial property is a huge decision and sometimes a stressful one. It’s essential for real estate owners to overlook details that are important to ensuring a smooth sale process.
Yet, checking these details can be detrimental when marketing the property, and ultimately hurt the sale potential of the building. While some issues are outside the owner's control, owners can complicate things for themselves, too.
In this article, we will discuss top 5 mistakes to avoid when selling your commercial real estate.
1. Selling Without Real Estate Agent Representation
An owner working alone is limiting themselves to only their personal selling, marketing abilities, and negotiating skills. Instead, when you choose to work alongside an exclusive agent with lots of connections, trends and market knowledge can widely expand the attention, and attraction to the property.
The number of potential buyers ultimately grows so that the best price and terms can be secured.
2. Property Information Not Prepared
Being unprepared or disorganised can lead to confusion and delay the real estate agents ability to sell the property on the market. When the necessary information and documents are organised, let the agent analyse the offering more accurately.
The documents that the seller should have prepared include:
Tenancy agreement
Tax bills
Property income and expenses
Proof of property renovations (e.g.Photos)
Mortgage information
3. Overpricing The Property
Owners are often ambitious and want to achieve the highest price at sale. However, this tactic can lead to listings that are priced too high above the market.
Hence, buyers will turn away when the commercial properties are priced too high. Most of the potential buyers want to optimize their profits and often seek the best deals that have the best financial returns, just like the sellers.
Real estate prices too high can also lead to an extensive marketing period, low offers, pricing reductions, and ultimately owner frustration. The best way is, do some research such as knowing the market price at that area and your commercial property bank value before setting your commercial real estate price.
4. Not Cleaning or Preparing Before Showings
A huge mistake that owners make is not cleaning or preparing the building before potential buyers visit.
A messy property can leave a bad first impression of the investment. This negative impression decreases what the true value of the property is and the owner unfortunately may lose this potential sale.
5. Lacking Patience
It’s understandable many owners would prefer their investment property to sell “sooner rather than later”.
But, negative impact may occur on sale results if owners rush the sale process. So, buyers may offer a low price to buy your commercial real estate if they know you are rushing to sell your property. For instance, if your selling price is RM 1.5 Million, the buyer will offer RM 1.3 Million to buy your commercial property. See, you will lose RM 200,000. But, you may decide to sell or not sell your commercial price at that price. At last, the power is still in your hand.
Selling a property takes time and patience from both the owner and real estate agent. The average time for selling a commercial property is around six months, and can include dozens of buyers, showings, and offers before securing the ideal buyer.
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