The real estate market is becoming more sophisticated with every year that passes. And with the arrival of the internet, the market place is wide open. It is now very easy for buyers to compare what is for sale and what has been sold, all from the comfort of their own home or office. It has become a well informed and very competitive field.
There are 5 main considerations that will have an impact on the ease, speed and price achieved for the sale for your property.
1. Method of Sale
There are 4 types of sales in the Commercial/Industrial market, each with its own advantages and disadvantages.
- Private Treaty (that is, a normal sale)
- Expressions of Interest
The Commercial/Industrial market operates on a different cycle to the residential market cycle. Generally speaking, the strength or weakness of the market is indicated by the strength or weakness of consumer retail sales (after an allowance for time lag). So industrial prices, for example, can be still rising strongly when residential prices are falling.
The style of your property, the price range and the prevailing market conditions will all affect the best method to use.
It is normal to increase your price to allow for negotiation, but overpricing can seriously work against you. The best buyers for your property usually come along in the first few weeks of it being on the market. These buyers have been looking for many months, know exactly what they want, know everything that is for sale in the area, know the prices intimately, and are ready to buy.
Aiming too high will simply drive them away. And once your property has been on the market for a while, it can quickly turn into a lemon.
3. Property Presentation
Even though a Commercial/Industrial purchase is less emotional than a residential purchase, most buyers do experience some pride of ownership (even if they won’t admit it), and a better presentation of your property will always help. Landscaping, painting, and removing all rubbish and clutter can make a big difference.
Sometimes a quick sale can be achieved without the need for marketing at all – a perfect result. An organised and professional agent will have a database of buyers on hand, and might be able to find the right buyer straight away.
Generally, however, a tailored marketing campaign will help your property stand out from the crowd, and will attract as many buyers as possible over a 3 or 4 week period. It will create a more competitive environment, and a better chance of a record price.
5. The Agent
Choosing the right agent can make a big difference to the ease and professionalism of the sale. It takes many years to gain the experience necessary to handle all the “go wrongs” in this field. And in Commercial/Industrial, a lot can go wrong.
The agent should have a full understanding of GST, depreciation and other tax issues, contract law, tenancy agreements, council regulations, zoning and development controls, strata considerations, and financing arrangements.