People selling commercial properties in California have experienced huge benefits from today’s lack of balance between demand and supply. This is especially true for people in Southern California. However, in light of today’s climate, where there is strong demand and too little supply when it comes to commercial real estate transactions, buyers are becoming savvier.
People who wish to sell their commercial real estate properties may wish to consider a strategy for pricing that is in line with the current market. Buyers a year ago paid large amounts of money. However, this is not taking place as much today unless a person’s building is satisfactory on all fronts.
A common mistake that sellers make is that they wish to focus on the higher end of the recommended price rage. They simply want to see what they can get at that price point. However, that can be a risky approach in the modern market, where buyers are not willing to pay top dollar unless the buildings they want are perfect.
Pricing properties on the lower end for commercial real estate transactions can spark a buying frenzy involving multiple offers, which may cause the asking price to actually be surpassed in some cases. The benefit of pricing a property lower is that the selling process is easier than it would be with an unachievable price that has to be lowered anyway. Commercial real estate remains a dynamic field not just because of the constantly changing market conditions but also because of the constantly changing laws, as well as the potential for legal disputes. Appropriate legal guidance in California may help people to navigate their deals in a manner that will help them to achieve the most personally favorable outcomes no matter the market circumstances.
Source: ocregister.com, “Commercial real estate: Should you lower your asking price?“, Allen Buchanan, Aug. 6, 2016