In the competitive property market like that of Australia, both buyers and sellers are facing much competition in the present scenario. It is not about finding the right party, but how quickly you can find the right party that matters.
While selling a commercial property, everybody likes to attain good revenue out of the deal. In that course of action, they don’t even hesitate to keep the buyer in the dark. Here, we will try to throw some light on the things that you should not do while trying to sell your commercial property. If you are planning to sell the property yourself then you can use the services of websites like CommercialProperty2Sell where you can list your commercial property for a minimal price whereas if you are planning on hiring a real estate agent then check the step below on how to properly deal with them and end up with a good transaction.
Do not try to negotiate a deal at your level:
It is true that you cannot negotiate a deal in a smarter way as a real estate broker can do on your behalf. There would be a slight investment from your end, but that would be worth it. You can know about the membership and the credibility of the real estate brokers from REIA (The Real Estate Institute of Australia). It is the national association and the governing body for the real estate profession in Australia.
Residential and commercial properties are different. Never make a mistake!
There is always a possibility that your concerned buying party turns out to be of shrewd nature. If you are not familiar with the basic difference in between the residential and commercial properties, the chances are high that you will get cheated. The earnings from the commercial property calculated on the basis of the serviceable square footage. The leases for the commercial properties are longer than the residential properties. In short, if you are planning to sell a commercial property, then there would be a higher cash inflow.
Not keeping things transparent with the Broker
It is a fact that while purchasing a commercial property, the buying party prefers to remain more tactful. That is the reason it is important that your real estate agent should not encounter any surprise from your end. Most of the people do not keep things open. For example, your broker is unaware of the fact that there are some of the areas in the bathroom that need repair. Such loopholes could eventually blow up the whole deal. It is very important to share all the weak links associated with your saleable commercial property with the broker.
Not calculating the cap rate
It is now a common trend in Australia! There are many real estate sellers who unable to determine the capitalization rate. The capitalization of earnings helps you to calculate income worth producing properties. If you can make an estimation of the net present value of future cash flow or profits, then it will help you to stand in front of the potential buyer with best sales prospects.
Not consulting an attorney
It is another common mistake committed by commercial property sellers. When you sell your commercial property, the terms are laid, and contract born. As a seller, in order to preserve all your rights and interests, it is imperative that an attorney not only consulted but retained during the whole process. There are many law firms in Australia that can help you with an attorney carrying an efficient track record.