Commercial and investment real estate is a fun game and moves quickly with demand and markets so playing the peaks and valleys wisely is where most investors make their money. We have all heard the saying “Buy low and Sell high” correct but how many of us are really planning that far out and how many are watching the latest curve move past them? Below I will list a few ideas for Real Estate brokers, investors and sellers to not let this opportunity pass you by
- Pricing – If your property did not sell in 2018, 2019 or the beginning of 2020 its probably either in a bad location or its way overpriced. We set records for commercial sales amounts in those years with easy money and lots of new development opportunity so if you are back on the market now its probably only going to move with a substantial price drop. Look at the offers you snubbed your nose at because those are probably the right values to sell.
- Backup Plan – If things get bad you will see an onslaught of people trying to create new startups and companies from scratch and finding a rental property at a good price for a short term is ideal. You may consider signing a short annual lease or even a contract sale while you wait again for the market to return. In the meantime work with your bank to refinance and obtain the best cash flow you can in a depressed market. When things start to pop back which they always do, you will still retain the property while someone else took care of it and paid your mortgage. Then refer to step 1. Don’t overprice again.
- Get out – So your property didn’t sell when everything else sold and you want to wait it out. Thats great and I encourage this a lot. First step is pull that property off of the market for sale and enjoy owning an asset that you will have for a future sale. The real estate market always comes back and as long as you have time it also holds its value so sitting tight and waiting for the next upswing is ideal. Leaving the property on the market can turn it sour or give a negative impression to buyers. I suggest atleast a 60 to 90 day break in most cases.
I don’t love it with times are tough or depressed but the opportunity to do the smart move with what you have is important. Not knowing the market or just a “hope and a prayer” listing is bad for all the properties around you but mostly yours. Consider this a time out period or a time to rethink the end goal and no matter what keep looking for the next buy.
Curt has been in the Indianapolis Real Estate business for over 10 years and spent his first years learning all aspects of commercial management and brokerage. He has had great success in managing existing commercial projects and new retail and office developments. Curt specializes in building owner representation and purchases in the Westfield Indiana market as well throughout the Indianapolis Metro area. Curt is passionate about growing the local Westfield community and in his free time volunteers with Westfield Youth Assistance and raising 2 children with his wife Jennifer.