Commercial real estate is fast becoming an efficient way to invest for the future. Adding real estate to one’s portfolio creates diversity and added security. However, selling commercial property has inherent complications that residential transactions do not include. This can lead to expensive and risky mistakes by property owners.
A New York commercial property owner who has tenants in the building he or she is trying to sell would be wise to disclose as much information as possible to potential buyers. This includes which tenants may be paying rent month-to-month instead of having a long-term lease and those who are in default on their rent. These factors can make a difference to a buyer’s lender, and the buyer has a right to know in advance.
Another mistake commercial property owners may make is failing to keep careful and accurate financial records about the property. This includes recent tax information. Additionally, someone who is interested in purchasing the property may show more interest if the owner can provide information about the expenses for maintenance and other items the building has required.
The asking price of a commercial property is a tricky number to pin down. Many owners make the mistake of asking too much or failing to take into account current market trends. It is also important for a seller to be willing to adjust the asking price based on buyer feedback and other factors.
There are many issues involved in buying or selling commercial real estate in New York. It is easy to make errors that can result in expensive setbacks, lost deals and legal complications. Having an attorney to assist with the sale of commercial property is one way to avoid many of these challenges.