Which list do you want to wind up on: Sold! Priced Correctly! or: Listing Expired – Not Priced Right!
Many elements influence the pricing process. Understanding what’s negotiable (and what’s not!) can make all the difference. There’s “the price”,” and then there’s the price — plus flexibility!
“Priced correctly” is partly hard, cold numbers and partly the perceptions of buyers. And, perceptions, per se, usually include assumptions. Those “buyer assumptions” can often present opportunities in the form of negotiable points. I like to call those Bargaining Chips! Every property has some.
As a potential seller of commercial property, you and your real estate expert have to look at all factors concerning the property in question. That means making secondary level decisions about anything (positive or negative) that might provide you with negotiable options – those bargaining chips I mentioned — that could push the sale forward.
There seems to be no limit on what a buyer might fancy as a negotiable possibility! (How about that big, old tank I saw out on the south forty?) When showing a property, there is no way to know exactly what the prospect is thinking about what they are seeing. I never cease to be amazed at the kinds of things that can tip the scale. If it’s within the sight or perception of the prospective buyer, the question just might come up: Is that included?
How do you intend to present your property to the marketplace? When preparing your commercial property for sale, the responsibility is huge when it comes to taking buyer assumptions into consideration. Do you want to strip it down to bare essentials? Would you rather set the scene for future use possibilities? Do you want to present the property in its present, full-functioning condition, with everything up and running? What chips are you willing to lay out on the table?
Each of those options has its up-or-downside when it comes to buyer perceptions and assumptions concerning the question: What’s included? Of course, when we develop the promotional package, we describe and detail the obvious parameters. However, in the cases where you have set a scene or remain up-and-running, experience has shown that any visible factor might be assumed to be part of the package!
If not clarified, it could be the furnishings, a piece of equipment, the window treatments or even the company name, logo and identity portfolio.
Points of negotiation are many. Examples can be as simple as offering to renovate and repair – or not! For instance, damaged flooring: Seller could offer to replace at their discretion as an add-on to the deal; or, a credit against the sale price could be offered, with the Buyer handling the flooring later at their own discretion.
As a seller, you’ll want to be careful not to imply or facilitate assumptions where you have no intention to follow through. However, you also have the opportunity to plan some flexible points into your commercial sale environment — specifically for the purpose of negotiation.
(Many sellers have been surprised by something, seemingly minor, that actually clinched the sale.)
As a buyer of commercial property, ask anything! You may observe factors or items not mentioned in the specs that you would like included. There is always the chance the seller might agree.
In my next column I will explore with you what makes a property unique … or not!