As any experienced Commercial real estate agent knows, both Buyers and Sellers often approach the prospective process with certain apprehensions: perceived or real barriers and often some very real fears. It is almost the primary challenge of your Commercial real estate professional to identify and acknowledge any barriers and fears that seem to be present with their new client. It’s hard to make progress with those issues in the way of creatively promoting a commercial property.
It’s simply the nature of barriers and fears to create doubts, questions and misconceptions. That is to say, some Barriers and Fears are real — but many are just perceptions that may prove quite explainable and solvable.
Let’s take a hard look at some real Barriers to selling or buying Commercial real estate. Commercial property in disrepair presents definite barriers. For a Seller, it is a definite negative to prospects viewing the property. Making excuses and apologies is not a strong position and opens the door wide for requests to lower the asking price! Prospective Buyers don’t take kindly to wasting their time looking at Commercial property that may have been misrepresented. (And, let’s be clear that there is a definite difference between poor maintenance and flat out disrepair!)
A very serious Barrier for a Seller could be stubbornly insisting on an inflated asking price. (That’s a little like getting squarely in your own way of a good, timely sale.) An experienced Commercial real estate agent will know how to realistically set your asking price. Low or poor tenancy in commercial residential units can show a prospective Buyer a red flag. Is it poor management of tenant expectations, or is the property simply not well situated or located for its intended use?
Perceived barriers and fears are a different story altogether. That’s true partly because perceived barriers and fears are usually about what someone wants to believe! For instance, if a Seller believes their property is “fine the way it is,” or is set on the price they “believe it’s worth,” and disregards their Commercial real estate agent’s advice, they create huge barriers of perception: Don’t confuse me with the facts. I’ve already made up my mind!
Some inexperienced Sellers may see prospective Buyers as “adversaries” with whom they have to do battle over — not just the asking price — but the relative condition of the property and its potential! Such perceptions are very real barriers to the success of the venture.
It’s very important to listen with an open mind to your professional Commercial real estate agent’s advice, insights and experience. On either side of the transaction — Buyer or Seller — real or perceived barriers and fears can seriously endanger the anchor value of your commercial property interest: profitability and fluidity!
The list of examples is long — too long for the space available here. Discuss your concerns in depth with your Commercial real estate agent. Together you can determine the plan and strategies to remove barriers and fears and insure a good and timely transaction!
Jim Magliulo is a Lake County commercial real estate agent and can be contacted at 707-263-5729 or jim@countryair.com. You can also view his website at www.countryaircommercial.com
