For the real estate investor commercial property sale is one of the most exciting aspects of the highly lucrative property market. Commercial property can be described as real estate which can be bought or rented as business premises. Generally people buy or rent commercial property because they can make profit on the premises. For this reason this type of property is usually very valuable.
Before placing commercial property on the market an accurate valuation of the property is done by competent estate evaluators. Naturally all commercial properties cannot be expected to command the same prices. A lot of different factors are used to determine the value of commercial property or any other property for that matter. One of the most important factors is location. Property located in prime areas command very high prices. This is perfectly understandable because location has a great impact on the success or failure of any business enterprise.
Apart from location economic factors also come into the picture. Property prices are usually high in times of prosperity. On the other hand property prices are usually low during a recession. For people who are in the process of a commercial property sale this important factor has to be considered as well.
The price of a commercial property can be much higher than it should be if the party which wants to sell notices an eagerness on the part of the other party which wants to buy the property. On the other hand if the party which wants to sell is eager is eager to get rid of the property the price can be much lower than the actual market price of the property.
Other factors to be considered in commercial property sale are the ownership of the property and the documents of the said property. property which belongs to one individual or one organization will not present any complications to the buyer so the value can be much higher. On the other hand property with a disputed ownership is bad news. Most people will not want to buy property with disputed ownership and this will mean a much lower price for the property in question.
From the point of view of the buyer the most attractive commercial property is the one with the right documents and undisputed ownership. This means that the property in question is clean. It is not mortgaged to a bank and it has not been used as collateral in any transaction. With all these factors dealt with the actual commercial property sale can proceed without any hitches.
The best option is for the party selling the property to get paid in cash. This makes things faster and the transaction can be completed in record time. The buyer can also make a down payment and pay the rest of the money at a later date. All these need to be properly worked out between the party selling and the party buying the property.
It has to be noted that buying selling commercial property is big business. The likelihood of people losing money is always there. For this reason commercial property sale needs to be done with a lot of caution. To be on the safe side both parties need to have competent lawyers so that nothing is left to chance. This is the best way to carry out commercial property transactions.
Tags: Business Finance, real estate, real estate investor commercial property saleThis entry was posted on September 7, 2011, 9:39 am and is filed under General. You can follow any responses to this entry through RSS 2.0. Both comments and pings are currently closed.
Source: http://www.duncantech.com/general/factors-that-determine-commercial-property-sale
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