What is Your Office Building Worth?
What is Your Office Building Worth?
Determining your office building’s worth is essential if you plan to sell it. Pricing your business and real estate is one of the most crucial steps in the selling process. You can determine the amount someone would be willing to pay for your commercial real estate through a formal business appraisal or a Commercial Broker’s Price Opinion of Value (BPO).
The approach you should take to determine the value of your commercial real estate depends on various factors, such as the percentage of the practice occupancy, tenant mix, excess land, complexity, and the intended buyers.
It is vital to price your commercial real estate. Improper pricing can have several negative impacts on the transaction at different stages. For instance, without the guidance of an experienced real estate broker, you may set an unrealistic asking price when attempting to sell your office building. This often leads to frustration due to a lack of viable inquiries received. A professional can help you avoid this pitfall.
Similarly, a lender may find discrepancies between the agreed-upon contract price for your commercial real estate and the lender’s 3rdparty appraisal reports during the underwriting process, which can bring the transaction to a halt or even derail it entirely. The buyer and the seller may become frustrated if they cannot find a third-party lender to fund the real estate transaction, highlighting the urgency of accurate pricing.
To determine the value of your practice, you can request a formal certified commercial appraisal report, which typically costs around $4,000, but this can vary wildly based on the property. We can save you thousands with our Commercial Broker’s Price Opinion of Value.
To discover the true value of your office building, we invite you to complete our contact form.