How do you know that you are not overpaying on your commercial real estate property? Maybe the company is charging more than what the property is worth, or they don’t have the expertise to provide quality service at a given price point. Either way, it can be tough to tell when you’re being taken advantage of in this industry. Consulting a professional company like Fundwise can save you from making unwise property purchasing decisions.
In today’s blog post, we’ll discuss four sure signs that your commercial real estate property is overpriced.
1) The Listing Price is Significantly Higher than the Average
This is probably the biggest red flag that you’re overpaying. A good company should provide a list of average prices for similar properties to give a fair and accurate estimate of its worth. If they can’t produce this, there’s likely something fishy with their price estimates.
2) Undetected Maintenance Issues
If you find maintenance or structural issues with a property, you can bet that the price will drop accordingly. The best way to avoid this problem is by hiring an inspector who will thoroughly inspect the property and provide reports of any issues they find before you sign any contracts.
3) Lack of Patience
Sometimes you pay an unreasonable price for your property because of your lack of patience. If you’re looking for a commercial property, you must remember to carry out due diligence before signing the dotted lines and avoid deciding in haste.
4) The Listing Has Been on the Market for a Long Time
If the commercial property you’re considering has been on the market for a long time without being sold, it can be a sign of concern. There may be problems with that particular listing. There’s no way to know those problems unless you invest in an inspector to assess the property’s condition carefully. If there are problems, you might want to look elsewhere.
If any of the above signs ring true with what your current or previous commercial real estate service provider has provided, then there might be some problems with their prices and processes. To avoid overpaying for the property, take some time before signing contracts; thoroughly inspect properties using third-party inspectors who can provide unbiased reports on the state of the property and the average price of similar properties.
Fundwise gives you the opportunity to finance your housing ambitions by providing home loans at affordable rates. Our consultancy services help first-time homebuyers get the best deals on houses by introducing them to the dos and don’ts of the real estate industry. People looking for a commercial property can also avail our services to get the funding they need in Phoenix, AZ. Apply now in 30 seconds and get the financing you need.