How Not to Sell Your Commercial Property?
In a 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 business in Australia.
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!
company-interest
There is always a possibility that the person buying commercial property turns out to be of shrewd nature. If you are not familiar with the basic difference between residential and commercial properties, the chances are high that you will get cheated. The earnings from the commercial property are 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 surprises from your end. Most 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. Let him do a thorough inspection and check your whole property to stay on track of how profitable it will be to sell it.
Not calculating the cap rate
It is now a common trend in Australia to not calculate the cap rate! There are many real estate sellers who are unable to determine the capitalization rate. The capitalization of earnings helps you to calculate income worth producing properties. If you look at the current business trends, 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 the best sales prospects. This will help you enhance the value of your property for potential buyers.
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 a contract is born. As a seller, in order to preserve all your rights and interests, it is imperative that an attorney is not only consulted but retained during the whole process when selling your property. There are many law firms in Australia that can help you with an attorney carrying an efficient track record. You should contact one as soon as possible to have all your legal rights and protections intact when you sell your property.
Conclusion
Use the above factors as a checklist of what you should avoid when selling your commercial property so that you can get the most profits and revenue from it.