Selling Commercial Property – How to Beat Unrealistic Sellers and Their Prices
Unrealistic sellers of commercial property are a common occurrence for real estate agents. The majority of sellers in investment property do not have exposure to the full market statistics and prices. These inexperienced sellers lift the price for the wrong reasons. They expect the real estate agent to market the property at any price gewerbeimmobilien verkaufen simply because the seller says to do it. Wrong!
At any given point in time the real estate market has prevailing pressures that impact the saleability of a property. This is what you should help the client understand. They include:
Availability of finance
Security of finance
Supply and demand of space
New developments being considered
Competing properties in the same market
Established prices from other sales
Return on investment outlay
Tenant profile and desirability for the investment
The number of active buyers around at any point in time
Time on market in any property promotion
Method of marketing
If the client still says that they want still more money for the property and will not budge in the negotiation, then it would be wise to raise the following points for the client to consider:
The buyers do know the market and will not pay too much for the property today. It’s a buyer’s market and will remain so for some time.
A property buyer will not reimburse the seller for the sellers mistakes in property purchase years before.
Buyers compare properties before they make a decision, and they could take considerable time to make that decision.
The longer the time on market of a property before it is sold, the less chance it will sell.
The buyers of commercial property are usually much more experienced than those in residential property. Negotiation and counter offers are second nature to them.
Expect the buyers to apply a provision for due diligence in the contract, so the property sale and supporting documentation has to be comprehensive and correct.
It’s not just the property that is being sold. It’s the future that the property offers the purchaser that is attractive, but the purchaser will only pay a today price.
Sellers can tend to block out these critical points of property pricing at the time of marketing or negotiating in the sale of the property. Remember that many buyers for the one property do not always exist and the offer today may be the only offer the seller gets.
A good real estate agent should have facts at their fingertips that provide clear market trends and evidence to steer the client towards a realistic sale decision and a fair market price given the prevailing market conditions. Be diplomatic but be direct when working with sellers of commercial property when it comes to price.