Real Estate Agents – Good Reasons Not to Put a Price on a Commercial Property for Sale

When it comes to selling a commercial property, it is not always the best strategy to put a price on the property and advertise it as such. Advertising a property at a price is a strategy that should be regarded as a last resort.

If the property has exhausted all other methods of sale then the pricing process may be acceptable. Up until then, there are some other very good methods of sale that can be explored subject to the conditions of the market and the type of property to be taken to sale.

Here are some very clear reasons why you should not put a price on a property:

  1. It shows the local market the ultimate price that the property owner requires. Regrettably many property owners stack up the price so they can negotiate downwards. This stifles the enquiry from genuine purchasers. The process can also kill the listing marketing campaign.
  2. Pricing a property and advertising that way is a process of hoping and waiting for the right purchaser to come along. Selling a property at a price is usually a long and drawn out process.
  3. In some respects, a property that is promoted a price is regarded by purchasers as generic and nothing particularly special. The property ranks amongst other ordinary properties in the local area. There is no urgency to the sale process.
  4. The property market is changing so fast that price determination is quite difficult for some properties and locations. The price can in many situations be a calculated guess.

When a property comes on the market for sale, it is the period of the first 4 to 6 weeks which are most important. During that time enquiry will be generated and inspections will occur providing the property is correctly promoted.

The qualified buyers that inspect the property will put their own price on the property based on local market intelligence. These buyers know what prices are doing and are usually far more realistic than the sellers of the property.

The critical issue in selling commercial real estate is to get fair and reasonable offers from the inspecting qualified buyers. If the method of sale you choose is supported by time factors and closing dates, it is quite likely that you’ll get offers that you can seriously consider.

The best time based methods of sale to use with commercial investment property are auction, tender, and expressions of interest. They all suit the marketing of commercial, industrial, and retail property. A local real estate agent will understand the best methods of sale to use given the prevailing property market conditions.

Even in today’s property market with its economic challenges and difficulties, the best initial methods of sale for commercial real estate still remain as auction, tender, and expressions of interest. If the property still is unsold after one of these methods has been correctly used, then the owner can resort to the standard price and hope approach.

The sale of a commercial or retail property is a complex process requiring knowledge and strategy. This is where the real estate agent that understands the local market can add significant momentum and focus to the sale process.

How to Find Great Deals on Investment Property for Sale

Most investors look in the wrong place to find investment property for sale. Take a quick look on the internet for investment properties and you may think that it’s not possible to find a good property for sale that is not over priced. The key when you are looking for investment real estate for sale is to understand that the best deals are not usually advertised. If you’ve read my latest book, “Commercial Real Estate Investing” then you probably already know that the key to finding good deals on real estate investments is in creating relationships with real estate brokers.

“Pocket Listings” of Investment Property For Sale

Some of the very best deals on investment real estate come from something known as a “Pocket Listing”. This is when a broker knows about a property for sale, but they have not yet officially announced it to the rest of the buyers who are looking for a property. With single family homes, this announcement is usually done by adding the property to the MLS or Multiple Listing Service. With a commercial property, the public announcement can be adding the property to Loopnet.com, mailing a postcard out, or by adding the property to the company’s website.

Why All Investment Property For Sale Is NOT Equal

The real estate brokers job is to get as much as possible for the investment property depending on the owner’s situation. If the owner of a property is in no hurry, and has no compelling reason to sell quickly, then the broker can price the property aggressively and wait for a retail offer to come in. On the other hand, if the seller is motivated by a divorce or business partnership that is coming undone, or perhaps the seller is dealing with an urgent medical condition, then the broker’s job is to get the investment property for sale quickly, even if it means lowering the price or offering some creative financing terms.

So ideally, you are going to work to create a situation where the property needs to be sold quickly, the seller is motivated, but the broker has not yet released the listing to the public. This is the pocket listing situation that you are looking for. The problem is that you can’t simply call up a broker that you don’t know and ask them “Do you have any pocket listings for me?” The answer is going to be no.

The reason for this is that when a broker does have a pocket listing, in most cases the broker is going to call the investors that they know and trust to offer them the opportunity to get a great deal on an investment property before they release the property for sale to the general public.

So your goal when calling or looking for commercial property for sale should be twofold.

1) Get the information about the property including all the income and expenses

2) Create a connection with and get to know the real estate broker

Your best deals probably won’t be the advertised commercial properties that you initially call about. Instead, once you create a connection and rapport with the broker, you’re in a position to get access to pocket listings which is where some of the very best investment property for sale can be found.

Residential and Commercial Property for Sale in India

India’s population is expected to be 1.3 billion in the year 2020. The demand for property for sale in India is surely going to increase. To supply the demand, developers started several projects in India. Recently affordable homes became popular because apartments are preferred by more people rather than bungalows. They are easy to maintain and affordable, before the need of big houses like villas and bungalows in India is preferred because families in India preferred to live in joint families. More and more families prefer to live separately on flats and smaller apartments in India the more reason for developers to create new projects. So this is the right time to purchase not only residential properties but also India commercial properties.

Affordable housing in India is the focus on development of real estate developers today. This is why most residential project while being developed all units is already sold even it is not yet completed or nearing completion. These new concept of home in India is becoming in demand because buyers consider them as international standard style of living at cheaper prices.

But some still prefer to buy traditional bungalows in India this is because investing on them could mean that value of the property will increase in time. This is why some developers are still coming up with projects of detached houses but are still trying to make them affordable. Developers are always putting in mind to jive with the international styles in designs and colors. This is a way how developers are attracting people to invest back in residential bungalows.

The commercial market in India has also increased a lot and investment on these kinds of properties is back on the rise. This is due to retail increase and it causes the big increase in value of the property. Commercial properties in India are on major upgrades in a huge way. Most businesses prefer to put shop in big malls rather than having traditional, individual and small shops. This only shows that India’s real estate industry is fast growing and this is the best time for investors to consider India as a prospect country to invest on.