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August « 2011 « CGC Commercial

Archive for August, 2011

Thinking of Selling Your Commercial Building? Price to Sell

by Chris Garcia, 4:57 PM on August 6th, 2011, No Comments

The biggest mistake that Sellers make when marketing their property is overpricing.  And believe it or not, almost every Seller does it.  The fear of leaving money on the table is usually enough to add another 10-20% onto the ideal selling price.  It is not difficult to determine the value of property, if you look at similar sales that have happened recently it will tell give you a very good indication of where the property will sell at.

In a recent survey of available property for a client, it was found that 95% of for sale buildings were overpriced (when compared to recent sales).  Sellers are still holding out for top dollar.  Nothing scares off a Buyer quicker than seeing high prices on real estate right now.  Most Buyers are bargain hunting.

If your property is priced right, there will be interest from Buyers and it will sell.  The only properties that are selling right now are value buys.  The Seller has dropped the price to a point where it’s a great deal.  Two examples are the Crystal Pierz Marina in Rogers which is under contract for $1.6M ($40 psf) which is half off the original list price and the Guyers building in Plymouth which is under contract ($3M or mid $20’s psf) for 40% off original list price.  Once it was known that the Sellers were willing to significantly drop their price to a market number multiple buyers made offers.  Both of those sales were bank deals.

Avoid the mistake of overpricing and differentiate your property from the competition.