Buying and selling commercial real estate is considerably more complex than dealing with residential transactions. Although it may be fairly easy for a homeowner to buy or sell a home without the assistance of an agent, those interested in selling or buying commercial real estate need the experience and knowledge of a commercial agent in many ways. Before attempting to complete any type of commercial sales transaction, buyers and sellers should consider several important reasons as to why they need the help of a skilled broker.
Determining the Value of Commercial Real Estate
One of the main challenges in the sale of commercial property is determining its worth. There are a number of ways that value is assigned to a building based upon its type, what it can be used for, the local market, income potential, and many other factors. Getting an experienced estimate of actual value is essential, whether selling or buying commercial real estate. The best way to learn the fair value of a property is by working with experienced brokers who understand the variables that determine value and can accurately assess the property.
Financial Considerations with Commercial Real Estate
When buying and selling commercial real estate, the financial aspect of a transaction can be more complicated than any other realty transaction. Asset liquidity is a chief concern when owners decide to sell; buyers must understand the extent of the potential risk they are taking. There are also many options to consider for creative financing as well as various tax options that both buyers and sellers should know about. The best way to address any issues and complete a favorable transaction is through the guidance of an experienced commercial agent.
Negotiating the Sale of Commercial Property
Along with the financial side of these transactions, negotiations when selling or buying commercial real estate can also be quite complex. Effective negotiating is important to ensure the quality of a building and its potential to earn income. This is the time for buyers and sellers to discuss concessions that may become a part of the sale. These negotiations include due diligence, giving buyers an opportunity to thoroughly inspect the property prior to any purchase, and following a more legally intensive process than residential transactions. Negotiations can be ongoing and are facilitated through the assistance of an agent who has the skills and knowledge necessary for these types of negotiations.
Transfer of Liability
Liability is an important factor when buying and selling commercial real estate. When liability is transferred to a new owner, that owner is responsible for any building code or local ordinance violations. The potential for liability issues during or shortly after a transaction is one more reason why it is wise to work with an experienced agent. Brokers can ensure that the right building inspections are performed and important protective clauses are included in the sales agreement.
For these and many other reasons, those interested in selling or buying commercial real estate should seriously consider working with an experienced broker to protect their interests throughout the transaction. Whether contemplating the buying or selling of commercial real estate, owners are guaranteed a more favorable outcome with their business venture than attempting to handle things on their own!