Selling commercial real estate can net you a great deal of profit, depending on the property in question. However, it is not as easy as putting a picture and a price online and waiting for the phone calls and emails to come rolling in.
There are many considerations to factor in. As a result, it is easy to make potentially costly errors.
1. Setting an exorbitantly high initial price
While it may seem like a good idea to start off high and negotiate down to the price you want, in reality, if you have your price set too high, it may repel potential buyers. You may have to lower your price, which may make others wonder if there is a problem with the building. You may also seem untrustworthy since you listed an unfair price at first. It is important to have a third-party consultant assess the actual value of the property and base the price on that.
2. Failing to disclose all necessary details
Utah law requires you to disclose important information. In your disclosure agreement, you need to reveal what you know about any:
- zoning or other legal violations
- defects in equipment sold with the property
- problems with the water and sewer systems
- late utility bills
- proximity to wild, agricultural, or undeveloped lands
There may be other facts you need to relate. Consulting a real estate agent is important since he or she should know what you need to disclose as well as the documents you need to file.
3. Failing to perform the proper inspection
Before you sell any commercial property, it needs to undergo a thorough inspection. This reveals any problems you may need to get fixed or disclose.
Mistakes in the commercial real estate industry can be costly. Doing research and consulting professionals may help you avoid making one.