Many in Ohio and beyond are discovering the benefits of owning commercial property. Real estate as an investment can add diversity to a retirement plan and offer an interesting and flexible source of income. However, there may come a time when a commercial property owner decides to place one of his or her investments on the market. When selling a commercial property, it is a good idea to be aware of some common mistakes in order to avoid them.
Since tenants are the lifeblood of a commercial property owner, it is important for the seller to reveal to a potential buyer any relevant information about the tenants of a building. This includes alerting a buyer if any tenants are in default of their rent or if there are tenants who are leasing month to month. These issues may affect the way the buyer’s lender recognizes the income from those properties.
Some property owners make the mistake of failing to maintain their records and paperwork, especially those tax papers that become critical during the sale of a property. Having an accurate report of the property’s income is the best way to show a buyer what to expect from owning the building. A property owner may also overestimate the value of the property and ask for more than the building is worth. It is important to be realistic about the asking price and prepared to adjust the price according to market trends and buyer feedback.
Selling commercial real estate can be complicated and stressful, but it can also be profitable. Often, a seller must be proactive and even search out potential buyers instead of waiting for them to act first. An experienced and knowledgeable Ohio real estate attorney may be able to provide just the advice and assistance a commercial property owner needs when selling real estate.