Listing a property for the highest possible price may seem like the best course of action, but more often than not it will deter buyers and negatively affect the final sale price. Establishing the price in line with comparable properties in the area, or slightly lower, will help move the property faster with less cost to the seller.
Rather than focusing on the final sale price, keep in mind the cost of NOT selling the property. When a listing sits on the market for months, it accrues ongoing caring costs like maintenance, property taxes, rent, etc. Holding out for a higher sale price can actually net a lower gain in the end. There can be a heavy cost to owning a property.
Timing is Everything
Identifying the right buyer is more than finding who wants to pay the most. It’s also about moving the property in a timely manner. When presented with a purchaser who wants to buy now but at a lower price than someone who wants to wait six months but at a higher price, it can be more beneficial to sell sooner than to hold out for more money. If you wait for the buyer with the longer timeline, you’re accruing costs the entire time. Additionally, it’s important to remember there’s no guarantee the potential sale won’t fall through.
Best Way to Maximize Value
Selling a property can become quite complicated, and most business owners don’t have enough time to dedicate to the process. To get the most value out of the deal, it’s recommended to enlist the services of an experienced commercial real estate broker. These professionals possess market knowledge and experience to help sell a property for the best price in the shortest amount of time.
Pricing the property correctly saves time, which saves money in the long run. Remember to stay informed on every aspect of the deal, from pricing to concession, as this will ensure you’re comfortable with your sale.
Type “crowdfunding” into any Web browser and you’ll see dozens of results pop-up: Indiegogo for a vegan filmmaking challenges. Crowdwise to save the Hebridean whales. Kickstarter for potato salad.
In no less than five years, crowdfunding (the act of raising hundreds or even thousands of dollars from people online) has exploded in growth. Take for instance, the $2.7 billion dollars that were raised through crowdfunding campaigns in 2012 alone (doubling in growth the previous year)*.
In its brief existence, crowdfunding has managed to weave its way across all industries, and the latest: Commercial real estate. Sites like those above aim to give anyone from young professionals to retirees an opportunity to directly contribute to a product, a Website, a cause – and see it come to fruition (or sometimes, not).
When it comes to commercial real estate, crowdfunding’ been used to help raise capital to invest in all types of property. Generally, with this strategy, it means lower fees, more transparency and better returns for the individual investing. It gives just about anyone the ability to build a diverse portfolio of investments. It opens doors for first-time investors and it’s less scary. Imagine that instead of giving $25,000 towards one property, you can spread out your investment dollars by putting $20,000 towards a hot new restaurant build-out and $5,000 to help fund a new green-tech condo complex.
Developers also benefit from crowdfunding in several ways. Overall operations are more efficient and costs are generally lower. Since borrowers are connected directly to investors, it eliminates the need for big banks to step in. And dealing with burdensome corporate overhead? Sayonara.
So is this investment strategy here to stay? It’s hard to say, but what I can tell you is that it’s a trend that’s certainly on the upswing and if you’re someone who’ considering making an investment in commercial real estate, it’s worth looking into. Before going into any investment, however, seek the advice of a consultant or a trusted broker. While there are some wonderful benefits, there are still unresolved issues around quality control and minimal regulations in place.
*Data sourced from http://www.crowdmapped.com/crowdfunding-trends-and-statistics/
The business landscape is competitive. The line between ethical and unethical can often become blurred. There is a big discrepancy and ultimately a determining factor in reputation, of how one sees the difference between the two. With the rate new businesses and competitors are emerging, there is a rising concern from established companies that they must do whatever they need to in order to sustain their place in the market. Sometimes, though not always, this leads to a one-sided result that is achieved by not taking the high road or considering the repercussions.
Playing fair does not make you weak. There are rules and ethics in the game of business that allow anyone to have an equal shot. Keeping these rules in mind and respecting a level playing field will build respect, not only for how others see you, but if others want to do business with you.
This is the most important aspect of conducting fair dealings. Every other benefit of fair play derives from the fact that positive business interactions will garner you more respect amongst peers and even competitors. Every negotiation has the possibility of a “Win/Win” scenario. When you work for transparency throughout the process and settle on that solution that is mutually beneficial, both parties come away feeling good about the situation. Over time, word of these continuous positive outcomes will spread and begin to develop into your reputation.
Depending on the industry, drumming up new business can be a painstakingly difficult process that takes weeks, months, even years in some cases. This is why recurring customers/clients are so valuable to any business. Whenever you walk out of a sale and feel like you pulled a fast one on somebody, there will be the short term benefit of acquiring that customer and the long term detriment of never getting them to come back or refer you to other clients. Maintain transparency throughout the process and reap the long term benefits of a lifetime client.
Book of Business Expands
Referrals are the lifeblood of most companies. These referrals increase tenfold with each positive negotiation, as word begins to spread that you listen well and react accordingly to the other side’ needs. By making a habit of understanding what both sides of the table are looking for, your network will begin to expand as those that you work with send new business your way. Effectively communicating to reach a strong compromise in all your work will increase the likelihood that you become the go-to for anyone referring business in your industry.
Too often, negotiations and business dealings end with one side feeling cheated or misled. This does not have to be the case. In fact, in order to succeed in the long run, honest and reciprocal negotiations should be the ultimate goal. Unfortunately, egos and emotions get in the way and decision makers do everything within their power to not wind up on the losing side of the negotiation table. By proceeding under the ideal that both sides can be the winning side, you will be better equipped to play fair and ensure that nobody feels slighted.
- Company Environment
- Collaborative space
- Individual offices
- Hierarchy of office space (bigger offices for partners or CEO’ and smaller for employees)
- Call centers (ie. sound proof space)
- Conference area (group meetings)
- Touch down areas
- Reception area for greeting customers
- Food options
- Security (is this important for you?)
- After hours accessibility to your office
- Parking or public transportation
- Reception area
- Being closer to partners, customers, suppliers, employees/talent, resources