Buying and selling commercial real estate differs from personal and private real estate in a number of ways. It is important for those just getting into the business to understand those differences.
It is also crucial to understand some of the biggest and most expensive mistakes that many newcomers make. By learning these sources of stress and avoiding them, it is easier to hold a higher level of confidence.
Managing files and records poorly
Forbes takes a look at some of the most expensive commercial real estate mistakes that sellers make. The first: not managing financial records well. Far too many people think they do not need to keep a strong organizational system for their files. Properly classify expenses, hang on to tax documents, and keep everything in a tidy system.
Setting the price too high
Next: overpricing a property. An ideal asking price is often difficult to reach. The unique features of both a property and also the potential demands and desires of potential buyers can all influence how much a person should realistically ask for. Generally speaking, a person should look at the realistic demand a property will net and then price the property at 10 percent above the sale price.
Waiting for buyers
Remaining passive is another huge problem. Many sellers will simply wait for the potential buyers to just start showing up. Not only are buyers usually overwhelmed by the amount of information available these days, but most buyers of commercial real estate live busy lives as investors and business owners. A seller can stand out from the crowd by taking the initiative to reach out to others first and seal that deal.