Investing in commercial real estate is a great way to make money.
It’s understandable to make a few mistakes when you’re trying something new. However, we all too often see some common and costly mistakes getting made by even seasoned CRE owners.
These mistakes often lead to buyers walking away and deals falling through. As a CRE owner, you simply can’t afford to make these kinds of mistakes.
Are you making these common mistakes in commercial real estate investing? Keep reading to learn what they are and how to avoid them.
Using Low-Quality Photos
If you want to show how serious you are as a seller, you need to be using high-quality photos of your property.
Not only are buyers likely to forget poor photos, but they may not take you seriously when they see them. Get professional photos taken – it’s worth the investment.
The way you advertise the property makes a huge difference in the pool of buyers who will be interested. Make sure you have the most, and the best, options by advertising right.
Getting Stuck on the Current Use of the Property
Never assume that a buyer is interested in your property for its current purpose.
Your property could be utilized by the new owner in a variety of exciting and different ways. Make sure to show them that.
Only envisioning the property in its current use is selling it short and setting limitations that can cost you serious cash.
Failing to Be Available
When you take too long to respond to buyers, they are going to think you have something to hide.
Respond promptly to buyers, especially if they have questions to present yourself as an honest and serious seller. Give buyers complete answers to their questions and have documentation ready to back up your answers.
Not Installing Confidence in Your Buyers
Try to think like a buyer. Instilling confidence in your property valuation is one of the most important things you can do.
One of the best ways to do this? Be honest with the buyer.
Get them to the property for an in-person tour and share information about the shortcomings the property may have. Buyers are more likely to trust you if you disclose information that benefits them.
Another way to convince buyers that you know your stuff – be willing to walk away if the price isn’t right.
While you might think this seems like the opposite of what you should do, showing that you’re willing to walk for an underoffer makes buyers more confident in your valuation of the property,
Avoiding Mistakes in Commercial Real Estate Investing
The best way to ensure you aren’t making these common commercial real estate investing mistakes? Bring in a professional.
Even the most seasoned CRE owners can make mistakes that leave millions on the table.
Click here to schedule a conversation with us today to learn more about how our experience and knowledge can give you an edge over your competition.