Marketing Commercial property is not as easy as it sometimes appears. Therefore, a specialist with decades of years of firsthand experience is imperative to achieve the best result. Bourke Commercial has a combined 90 years of such experience to draw upon.
Sure, a Seller can fluke top dollar on the odd occasion, but why “roll the dice”, when you do not have to!
Sometimes it is not just the end sale price that is important to a Seller. It can also be special terms like settlement or milestone dates/ periods to achieve a certain outcome, legal and accounting structures and general advice drawn from this experience that results in the Seller being totally satisfied.
A seasoned performer like in the Bourke Commercial team may charge a little more commission than a beginner or not as experienced Agent, but the experience that comes with a seasoned performer is well rewarded. The little extra commission will usually be minuscule, compared to the difference in the sale price.
Bourke Commercial operatives work for the Sellers to achieve the optimum price and terms.
The preparation put into getting a property ready for sale can be the difference between getting a standard price and a great price. In most cases, it is not hard, time consuming or expensive to value ad with a tidy up.
When selling a property, the process can be stressful or stress free. At Bourke Commercial we strive to make the process as easy as possible for everyone and try to do the heavy lifting through the campaign.
With the property market being extremely buoyant, new Buyers are active and continually coming into the investment property market. Their homes and other investments are increasing in value and with low interest rates, the timing has never been better to borrow cheap money and lock in another investment.
In some instances, bank interest is about one third of a rental income at present.
Commercial property investment is not for everyone and neither is developing property for the first time, but at Bourke Commercial we have a wealth of experience to offer and many contacts and referral partners to introduce people to.
Whether it be lawyers, accountants, town planners, depreciation experts, architects, we are only to pleased to assist.
Methods of Sale – Commercial
Selling via Private Treaty
A standard property transaction is known as a Private Treaty sale. This is when a price is set, and Buyers are asked to enquiry and make offers. On rare occasions, a Seller and Buyer can agree on the list price and an immediate sale eventuates. This is usually because the property was offered under value.
In reverse, if a property is listed well over what the market perceives as market value, it will not attract Buyers or inspections and will sit on the market and go stale. This is the worse position for a property Seller to be in.
Even registered valuers, with years of training and knowledge, get it wrong on occasions.
The only real advantage of a private treaty negotiation is for a buyer to sign a conditional contract, which allows for a contract fall over.
At Bourke Commercial, we do not see any real advantages to the Seller.
Selling via Auction
A public auction is when all prospective buyers gather at the same place and time to bid on a property against each other. The bidding is on the Sellers terms and not the Buyers, making them all competitive and easy for the Seller compare. In other words, on the Sellers terms, not the Buyers.
Once all bidders have reached or exceeded their price, the Seller determines whether to accept that highest bid. If the Sellers price expectation is reached, the property is then “placed on the market” by the auctioneer and will be sold.
The auctioneer will call “We are Selling” and reopen the floor to all parties to have another go at being the successful owner. On most occasions, this stirs the Buyers up and bidding starts again, pushing the price even higher.
At the conclusion and the fall of the auctioneer’s hammer, the successful bidder will execute the Sellers contract and pay the required deposit.
The obvious advantages to an auction are:
- There is no price barrier for Buyers to shy away from, so more enquiry and inspections.
- All potential Buyers gather at the one place and time to compete against each other and not the Seller.
- The Seller remains in control and has a degree of certainty to plan a sale
- The Seller makes the rules and nominates the auction
- The bidding is cash unconditional. There is no cooling off period, finance clauses, building & pest reports etc, every bid is unconditional.
- An auction is an upward bidding motion, not downwards
Sale by Tender or Expressions of Interest
Very similar to the auction method, but private bidding. Some Sellers prefer to keep negotiations private and away from the public arena for a myriad of reasons.
In some cases, an Expressions of Interest campaign is run to make a short list of Buyers and then only those registered are selected to compete in a formal tender. This is sometimes the case for properties with a lot of leases to read through or there are other delicate situations involved.
Once a list of expressions is received, access to the “due diligence” room will be provided to those registered parties only. This will contain leases and other confidential documentation pertinent to the property sale.
This can be further detailed in person on a case-by-case basis.
One thing that can be assured when dealing with Bourke Commercial,
Our Clients/ Sellers confidence will be treated in high regard and we will do our utmost
to exceed our Clients expectations.