Is it Worth More to You?
Selling commercial real estate in Hagerstown, Maryland can be a very cautious and detail-oriented game. Selling real estate is unlike most other types of transactions, mainly due to the large sums of money involved.
There are numerous factors that can affect a property’s price: the age of the property, it’s condition or the area that it’s located in. With such high prices, these minor details can make thousands of dollars of differences.
Another factor that can cause a significant price difference is how much the property means to the seller, from a personal standpoint. A property’s value on paper may be around $2M, but what if it’s more than just real estate to the seller? You may be asking for $3M instead, because the property has been passed down through several generations of your family, or maybe because it was where you started your first business.
Regardless of the reason, personal value can certainly affect your asking price. It can be hard to determine how much weight this should have in increasing your property’s price. The following guidelines can help you in shaping your decision.
How important is the property?
Before making any serious decisions, you certainly need to consider just how important the property is to you. Why exactly does it hold a special place in your heart? Was it the place where very something special happened in your life, like your first business, or are you just biased because you’ve owned it for a long time and have grown attached to it?
The best way to figure this out is to think about your situation from the buyer’s perspective.
Could you justify buying the property for 5% more than it’s worth due to the history and circumstances? If not, then you need to be realistic and try to let go of your feelings toward your property. There are many other sellers that have emotional attachments to their property, but they can’t all sell above market value. If you do attempt to sell at too high of a price, you can expect an abundance of negative feedback from buyers – and ultimately, you’ll have a far worse chance of selling.
If you think a higher price is justifiable, then you should express your reasoning to your interested buyers. There’s no sense in trying to sell a property above its market value when your buyers can’t see it from your perspective. With this said, many buyers may still pass on the opportunity if they think it’s a bad deal, but this will give you a better chance to find a buyer who can understand your reasoning.
You’ll need to come terms with the fact that your property could take much longer to sell. Consider whether the importance or your property is worth this extra time and effort.
Use these strategies to help you sell.
Hagerstown is a great place for selling commercial real estate, so if you’re committed to selling, there are some steps you can take to make the process easier.
First things first: you need to get your property appraised by a professional. You should be doing this anyway when selling a property but doing so in this situation could help you reach the asking price that you’re looking for. An appraisal will give you something tangible to show your buyers when trying to justify your price.
Once you know your property’s market value, you can try using anchor pricing to give you the upper hand before starting a negotiation. List your property for slightly higher than what you actually want for it. When people send you offers, (which are almost always lower than the asking price) the offers will be closer to the price that you’re actually looking for.
In addition to these steps, it goes without saying that you’re going to have to play hard ball in your negotiating. Hopefully you have patience, because you may be turning down a lot of offers in order to find the right price. If you’re committed to a price, you need to stick to your guns and learn how to say “no.”
You can also try putting an expiration on your counteroffers to show that you mean business. Assuming your counteroffer should be close to your goal price, the pressure of time could be just enough to make someone pull the trigger on buying your property.
Don’t be blinded by your emotions.
These strategies are used in almost any instance of selling property. If they’re not working, the price you’re asking for may just be too unreasonable.
The truth is that almost everyone has some degree of emotional attachment to their property. In a perfect world, everyone would get an extra buck for the sentimental value and history attached to their property. Unfortunately, the world is not perfect, and sometimes we have to be realistic and settle.
By going about your deal more reasonably, you will save yourself from significant amounts of stress and time. In most cases, asking for a high price because you’re overly attached to your property will bring about many negative interactions and ultimately cause a frustrating experience.
So, try to see it from the buyer’s perspective and set a reasonable price.
Get the right price for your commercial property.
Hopefully, this article has provided you with the general guidelines for dealing with emotional attachment in regard to selling your commercial property. If you’re still seeking advice on selling commercial real estate in Hagerstown, we can help.
We pride ourselves in providing commercial real estate services in Hagerstown with our trusted brokerage expertise.
Rockpoint Commercial is a commercial real estate broker and property management service that excels in selling commercial real estate. Get in touch with us today online or give us a call at 240-578-4220 to get started.