No matter if you want to buy or sell commercial property in Florida, you deserve to know common mistakes. A single slip-up could have avoidable, disastrous results.
Forbes breaks down common commercial real estate seller oversights. Set yourself up for success by understanding commercial real estate transaction mistakes.
Managing financial records poorly
Some real estate sellers pack on expenses to eliminate or reduce taxable income. The seller’s recognized net operating income should reflect whatever the person shares with buyers. Sellers should also classify company expenses properly.
Failing to share tenant defaults
Property sellers should let buyers know when tenants miss rent payments. Not only could due diligence uncover such issues, but tenants may also share such details in an estoppel letter. Sellers do themselves a favor by disclosing defaults openly and as soon as possible.
Overpricing the space
Various factors determine a commercial space’s asking price. Sellers should price a space fairly without discouraging interested buyers. Sellers should also practice honesty regarding commercial property demand. Buyers should expect sellers to price a space roughly 10% higher than the expected sale price range.
Ignoring market feedback
Buyer demand fluctuates, a reality that sellers must accept. When sellers do not adjust to market feedback concerning buyer interest, they may set themselves up for failure. Commercial buyers do themselves a favor by working with a seller willing to adjust her or his strategy.
Everyone makes mistakes in the commercial real estate realm, but parties can avoid some of those mishaps. Being well-educated on the matter better ensures all involved feel good about doing business together.