If you are thinking about selling your Commercial real estate property on your own — without the guidance and expertise of a licensed real estate agent — take a bit more time to examine all the details, steps and responsibilities before you make a final decision. If you are considering buying a property offered “for sale by owner,” without the assistance of a commercial real estate agent, think twice. I’m not saying it can’t or doesn’t ever go smoothly. I am just saying think about it… carefully.
On the Owner/Seller’s side of things, there are some important considerations that shouldn’t be overlooked. Once the word is out (perhaps by listing your property with a resource such as “LoopNet” — with a membership and fee requirement), what are your “controls?” Take into consideration the realities and the risks of having strangers knocking on your door and cruising by the property.
With no safety filter — such as a professional Commercial real estate agent who would be managing prospects quite carefully before they reach your doorstep — what is your plan! Would you always be able to have a second party present just-in-case? How will you know if someone on your doorstep is a bona fide prospective Buyer — or a questionable opportunist?
And it’s not just about risks. As an Owner/Seller, do you know how to manage a Commercial sale to your best advantage? Do you know the paperwork and compliances inside out? Do you have that paperwork monster wrestled to the mat? Of course, the perceived biggest benefit in “For Sale By Owner” is not having to pay that nice commission to a third party!
When Buyers see that “For Sale By Owner” sign they assume they can get the property at a better price because the seller isn’t paying a commission; and, conversely, the Seller may not be paying that commission but instead is getting less for the property! Sadly, and too often, those “saved funds” get paid out thru the back door — in the form of mistakes (from pricing to promoting) that could have been avoided with professional help.
Nevertheless, as an Owner of Commercial property that you want to sell, it is wise to give serious thought to the advantages and protections of placing your Commercial property sale in the hands of a licensed, experienced Commercial real estate agent.
As a Buyer looking at “for sale by owner” Commercial property, you’d be smart to work with a Licensed Real Estate Agent. Remember that the Seller in such situations is most likely an amateur. You need the help, insights and guidance of a Commercial real estate expert to efficiently and professionally move through the purchase process.
Here are some important things to remember. To begin with, Commercial property exists and functions under very different ground rules than residential property. Knowing the ropes of Commercial real estate transfer means knowing the technical process cold turkey, as well as knowing the overall relevant market. Often, what may seem simple can become hopelessly complex with one wrong move. Likewise, many aspects of the process that seem baffling to an inexperienced Seller might really be quite simple. Either way, experience, knowledge and a proven, successful record is the best insurance.
The very phrase “For Sale by Owner” has simple, friendly implications — like a neighbor delivering an apple pie! Be smart — both Seller and Buyer — and approach such prospective transactions with due diligence!
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
