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Hire
an un-cooperative professional. Remember, that name on the sign advertising your listing
for sale or lease is your front man. All inquiries are funneled through his
phone or email. If he is tardy with follow ups - refuses to answer texts,
emails, or calls or is generally non-responsive - you are sunk.
Ignore
the offers below your asking price. Our market is changing. The days of multiple offers and
frantic bidding are over. Carefully consider every serious proposal from qualified
buyers or tenants. I believe you’ll be glad you did.
Market
the building while occupied. Generally, vacant buildings are the fastest to lease or
sell. Specifically, spaces that have been vacated, properly staged or have
received new flooring and a fresh coat of paint are most desired. If your
building has an occupant - sure - you get some marketing time while collecting
rent. The downside of this? Showings are challenging, buyers have difficulty
envisioning their operation in the building, and tenants have to imagine post
occupant refurbishment. Plus, folks who need to occupy immediately are forced
to consider readily available choices.
Set
a ridiculous price. That
is so 2017 of you! Now days, emphasis is placed upon a realistic value and
motivation.
Don’t
do any investigation. If
selling - invest a few thousand dollars for an inspection and possibly an
environmental report. You shouldn’t wait for your buyer to discover what issues
exist. If leasing - assemble all the maintenance records and expenses. Plans or
drawings are essential for either buying or selling. These items should really
be accomplished prior to marketing.
Do
it yourself. Sure.
You may save the fee - but are you prepared to generate interest, field
inquiries, arrange showings, negotiate proposals and execute the transaction?
How do you insure you’re getting top dollar? Are you keenly in tune with the
last few deals that transacted? How will you justify your value with a lender’s
appraiser? Suddenly, that 6% looks like a post holiday bargain.
Value
the property on projections not actuals. In up markets - sellers look to the future, project the next
up-tick in rents - even though there is lease term remaining - and create
pricing based upon this dream. Buyers happily play along because of the lack of
available buildings. Once the market changes - buyers scrutinize the numbers
and are unwilling to buy on “maybes”.
Allen C. Buchanan, SIOR is a
principal with Lee & Associates Commercial Real Estate Services. He
can be reached at 714.564.7104 or abuchanan@lee-associates.com his website is allencbuchanan.com
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