3 Costly Mistakes People Make when Selling Commercial Property
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1. Sellers neglect to have an estimate of the market value of the property done, thus risking financial loss and/or delayed sales.
Whenever you are selling a commercial property, it is always important to have a
market value estimate of the real estate done at the beginning of the sales
process. Sellers often mistakenly consider a real estate appraiser‘s opinion as an
adequate estimate, but it simply is not suitable for sales purposes.
2. They sell their property on their own, or in cooperation with unverified brokers
If you have the necessary knowledge of the law, finance, business, and real estate, and
personal experience with at least dozens of commercial real estate sales, you can
successfully sell your property on your own. You' ll probably find a prospective buyer
with whom you can successfully complete the deal.
You will not be able to be too choosy, however… it is likely that there will be only
a single buyer who will be able to demand a 5-15% discount. Making such
concessions is often unnecessary. When you rely on an experienced broker, they
will not only find you a suitable buyer, but in most cases, they will provide you with as
many as 3-5 buyers within a relatively short period of time, all willing to pay the full
purchase price. In the end, for you, such a scenario can mean that you close at a
purchase price higher than you were originally asking for.
3. The 3rd mistake is to underestimate the importance of the preparation of contracts and other documents
A frequent complication in the sales process of commercial or residential real estate
is to underestimate the importance of the final form of contracts and other
documents that are tied to the sale. Their preparation should be done particularly
carefully, paying attention to any possible problems that can develop, and taking the
current legislation into account. The risk of complications when changing ownership
of the property is relatively high, so it is necessary to have a well-developed
" reservation contract" which must actually represent an " agreement regarding the
the future purchase agreement, and, of course, the purchase contract itself.
Do you have a commercial property for sale?
Magna Enterprises LLC can purchase your commercial property all cash and close in 10 Days! Call us at (310) 734-4144 or email
shawn@magnaenter.com for more info.
