TYPE OF TRANSACTION:

Selling a building

THE CHALLENGE: 

Convincing the seller to raise the listing price

THE RESULT:

Seller nets hundreds of thousands more than expected

THE LESSON:

Choose the right commercial broker

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TRANSACTION DETAILS
A building owner and business man by the name of Dick Stohler obtained two appraisals on his 34,000 SF warehouse building in Tampa from two different national firms.  Both came in at $1.5 million.  He talked to me about listing the property at that $1.5 million figure.

WHAT WAS THE CHALLENGE?
I reviewed the appraisals and told Mr. Stohler that I thought the appraisers had missed some sales in the area and that the value was probably higher.

I suggested raising the listing price from $1.5 to $2.2 million.  He reluctantly agreed.

On the day the listing was to be signed, I told Mr. Stohler that I had had second thoughts about that price.  He looked at me and nodded, thinking I wanted to lower the price closer to the appraised values.  “No,” I said.  “I want to come out at $2.4 million.”  Once again, he reluctantly agreed.

THE RESULT
Within 30 days we had two viable offers.  As it turned out, the building needed a new roof, worth about $200k, and one buyer did not want to deal with reroofing. The second buyer submitted an offer of $2.25 million which was accepted and was the closing price.

THE LESSON
Nancy Phaneuf Commercial Realty and Development knows sales, knows values and knows how to evaluate an appraisal on office and industrial buildings.  “I have probably seen most of the buildings inside and out. I know the vital facts about the environmental, the parking, any extra land, special features like a/c warehouse, upgraded electrical or (in office environments) the flexibility of the layout and future repairs that will be likely. That knowledge means I can get the greatest value for the seller.”

Mr. Stohler netted hundreds of thousands of dollars that he did not expect.

Contact Nancy at NancyP@nprdevelopment.com or call 813. 259.1519 for a conversation about your commercial real estate needs.