Posted by ray@lcorn on December 29, 2002 at 15:28:52:
jeff,
If the FMV of the building was established using the rental income from a tenant soon to be gone, then 60% of that number may be right on the money. What you’re selling is a situation where there is no certain income stream. If you want top dollar for the property, then put a tenant in it on a multi-year, market rate lease.
Auctions are a great way to dispose of property quickly. However be aware that the market will price the property based on the current conditions, which include the income, the market, and the condition of the building.
Does anyone have any comments on selling a commercial property using an auction?
My property is being marketed by a commercial broker right now but I haven’t signed a listing agreement yet. lol - I just got my first offer on the building at 60% of FMV (can close in 30 days) for the building which has left me very discouraged with my broker. The building has been on the market for sale/lease now for a couple of months.
Being discouraged, I’m thinking of switching from this broker to an auction broker. The building is going to be vacant at the end of this month. Any comments?