On BuildingSearch.com you will find many commercial buildings for
sale at either their perceived or true market value depending on who you
talk to! The sales process for most any commercial buildings for sale
is to expose it to as many potential buyers as possible. Given the reach of the
Internet, BuildingSearch.com is the perfect venue to help orchestrate
commercial buildings for sale.
For office commercial buildings for sale, the seller will
often approach a certain class of buyers that often includes users of real estate.
Many times users will pay more than other typical investors during the
commercial buildings for sale process because the lease Vs. buy decision
favors the tenant in the long run. The same can be said for the industrial building
sale. Industrial users will often pay more than the typical investor because they
intend to physically use the asset and it has more value to them.
Many commercial buildings for sale will involve a
commercial real estate agent
or broker to help set the sought after sales
price, and generate activity. Many such commercial real estate agents use BuildingSearch.com
to help market their listings.
Setting a price for office commercial buildings for sale can
involve several factors. If the commercial buildings for sale
are leased, the commercial buildings for sale will often trade
on the income stream of the building or its return on investment. If the building
is vacant, and the commercial building sale market is strong typically driven by
underlying leasing activity, the building will trade on the value of its anticipated
future rental stream.
There are other ways to assess the value of a commercial building
for sale. If there is a commercial lender involved, there will undoubtedly
be some sort of formal appraisal process completed by a licensed appraiser who forms
some sort opinion on the value of the commercial property for sale. This is true
if it is an office building sale or an industrial building sale.
An appraiser can use a variety of ways to determine the market value of
commercial buildings for sale. An open market building for sale will certainly
help justify the sales price as the sales price is then construed as fair market
value. Ultimately though the appraised value has to fall back on other market comparisons
or “comps” for similar buildings nearby, and the value in use method of using the
rental stream the building for sale is generating.
In the US, a typical definition of market value can be found on the FNMA residential
appraisal forms, as the FNMA 1025, which states the following:
DEFINITION OF MARKET VALUE: The most probable price which a property should bring
in a competitive and open market under all conditions requisite to a fair sale,
the buyer and seller, each acting prudently, knowledgeably and assuming the price
is not affected by undue stimulus. Implicit in this definition is the consummation
of a sale as of a specified date and the passing of title from seller to buyer under
conditions whereby: (1) buyer and seller are typically motivated; (2) both parties
are well informed or well advised, and each acting in what he or she considers his
or her own best interest; (3) a reasonable time is allowed for exposure in the open
market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial
arrangements comparable thereto; and (5) the price represents the normal consideration
for the property sold unaffected by special or creative financing or sales concessions
granted by anyone associated with the sale.
The same rules apply to determining value for the commercial building sale. The
industrial building sale works just same as the office building sale in that a competitive
environment is created for both the buyer and the seller. commercial
buildings for sale can be queried for easily enough on BuildingSearch.com
by selecting the for sale or for sale and lease search filter.
to start your search.