When you are thinking of selling your commercial property, either to the current tenant or to another investor, one of the most important things you can do is price it properly. After all, you're generally trying to strike that just-right balance between maximising your profit and keeping the price low enough to attract a lot of attention from buyers.
The question, then, is what goes into effective pricing, and as you might imagine, the answer is "quite a bit." First Republic noted that there are many different ways to evaluate how to price a property. There's no single right way to do it, of course, so you might want to look at the options available and determine which strategy will work best.
When pricing a commercial property ahead of a sale, some like to think about it in terms of what it would take to rebuild the entire property from scratch. Others like to look at sales data from recent sales of similar buildings in your area.
Others crunch the numbers to determine how much a would-be buyer could potentially make as a result of owning the property, or look at a price as a measure of how much they charge per usable square foot of the space. As such, you should examine all of these issues and determine which price is going to work best for you based on your unique property.
No matter what you choose as your valuation method, when it comes right down to it, you're just basing a decision on data points. Reonomy pointed out that, because of this, you need both the most and the best possible information about your property, the local market and other critical issues that would likely affect pricing. Obviously, this is not a decision you should make lightly, because the commercial real estate sales process can often be lengthy.
For that reason and more, it's always a good idea to work with the real estate professionals at Ray White Surfers Paradise. We can provide you with guidance based on years of experience on both sides of the sales process, and help you find the right strategy for your unique needs. Get in touch with us today to learn more about how we can help you sell your commercial property for the best possible price.