A commercial property today should be priced to sell. There should be no misunderstanding when it comes to the current levels of property enquiry, and the tougher nature of the prevailing property market.The owner of the commercial or retail property needs to have a reality check when it comes to the current levels of buyers currently looking to purchase property. They also need to understand what the buyers are looking for and the factors that usually apply when it comes to making an offer for a property today.Most property transactions in this market will have a degree of slowness or frustration. That is simply a byproduct of a slower property market.These factors below are quite common:Every listing taken to the market will have limited enquiry and therefore you will have to do more with less. For this very reason, the price that you set for the listing needs to be realistic and correctly structured. The method of sale should be aligned to the prevailing market conditions.
The time on market for the average property available for sale can be lengthy. That is certainly the case if many other properties are available for sale and purchase in the same market. The buyers today will look at many listings before they will make a choice and finally make an offer.
When an offer is finally made for the particular property, the negotiations can be lengthy and may expire if the price is not correctly aligned to the property type and the local area.
The financiers for the average commercial property will be quite selective in providing funds for the transaction. The restrictive loan value ratio will be requiring the buyer to put in a lot of personal capital to make the sale work.
The financiers for the property will be quite critical when it comes to prevailing tenancy mix and existing lease profiles. The existing tenants in the building will need to be optimized for the time of sale. Vacancies will need to be minimized.
The permitted use for the property and any existing zoning limitations will have an impact on the future of the property. The buyers for the asset and the financiers will be looking at the upside that can occur through any zoning and property classification.Taking all of these things into account, every property listing today needs to be correct and focused on the prevailing market conditions. Keep well ahead of the prevailing price ranges and rates of enquiry when it comes to each property type.Local market information will help you convert the listing to more enquiries and ultimately a successful transaction. That is what the owners of property typically require, however they can misunderstand the market and develop false assumptions when it comes to the pricing process.Marketing a property today is not an experiment. It is a specialized process requiring real strategy and correct decisions. If the price of the property is going to be too far away from market, walk away from the listing let some other agent waste their precious time on the unrealistic vendor.