Let’s Talk Price Adjustments
A price improvement would ideally bring the price of the property to market value.
A price reduction is a great way to have something new to talk about regarding a listing. It is a great reason to call past leads, send an email blast, call neighboring owners, etc and let everyone know about the new asking price.
I always encourage owners to think in terms of opportunity costs when a property isn’t selling or leasing.
In other words, what are you losing every month a property is vacant or not sold?
For example, if a property is available for lease for $10,000 per month and a tenant will sign a lease today and pay $8500 per month, the owner has to consider one critical point; how long will it take him or her to find the tenant who will pay $10,000 per month in rent, and what will they lose in the meantime?
Often an owner will lose $40,000, $50,000, $60,000 or more in rent and will never recovery their cost of vacancy waiting on a tenant who will pay the higher rent.
If you’d like to discuss your commercial real estate needs, let’s connect!
Emma McDaniel, CCIM
emma@mcdanielandco.com
864-576-4660
