When you are ready to sell a property, undoubtedly, a few questions go through your mind… What should I list the property for? What is the commission? What is the lowest price I will accept?
Once you've had a chance to answer the questions above, you need to see if there is any room for you to maneuver, if the market isn't what you thought it would be.
I find that most sellers know the value of the property within 5% of the true market value. The problem comes when the lowest price they can sell for, is at or higher than the actual market value of the property.
If you can't sell for less than the market value, you may want to ask your Real Estate Professional what kinds of improvements you can make to exponentially increase the value of the property.
This may seem like a gamble, but in over 10 years of Commercial Real Estate Sales in Alberta, I can recall many desperate sellers that refused to take their agent's advice to paint, clean, de-clutter, and subsequently sell to a flipper who pays a lower than market price. Simply spending time and a little bit of money painting, cleaning, de-cluttering, can help you make a very healthy profit.
Unless the real estate market is in an obvious upswing, I recommend you list your property within the range given to you by your trusted real estate agent or real estate appraiser. In 2010, I saw many properties selling for 5-10 percent less than appraised value and some as low as 30% less.
The goal is to sell the property in a timely fashion because most properties have a carrying cost associated with them, and buyers always try to use the "time on the market" as a way to negotiate the price downwards.
If you have any questions on the information above, or you would like a Market Assessment of your Commercial Property, contact Bob Sheddy at 403.324.2222 or email firstname.lastname@example.org to arrange an appointment to meet.