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Drop The Price Or Wait |
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Ms. Lank: I own an unoccupied commercial building which I have up for sale. Early this year, appreciation levels were about 10-12 percent a year. Now, I'm told it's dropped to 6-8 percent. Additionally, my agent states buyers are looking for deals on fixer-uppers. Since my building is in good shape and since my asking price was based on better times earlier this year, am I forced to lower my Multiple Listing System asking amount, which was quite reasonable already? Or is there hope for a better market next year? |
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Even if I knew where you’re writing from, I still couldn’t predict what’s going to happen with commercial real estate prices in your area. I can tell you that your asking price was not “quite reasonable”. If it were, someone would have bought the place.
Figure out what the property is costing you each month in taxes, insurance, utilities and lost income on your equity. Multiply that by the number of months you’ve had it standing empty. Perhaps if you had asked that much less at the start you might have found a buyer.
Now decide how much more you’re willing to invest at this point. To me it seems like throwing good money after bad. But if you can afford it, and if you’re a gambler, I guess you’re free to go ahead and just wait for lightning to strike. |
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Edith
Originally published on December 6, 2006 |
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