Determining how much commercial land is worth can be a little bit tricky compared to estimating residential areas. There's usually not nearly as much information present related to past sales of similar property types, and this is often times used as a starting point during any type of real estate valuation.
Commercial real estate can be anything from a vacant lot in an area zoned for business use and office building construction, to fully built and occupied office buildings ready for rent or lease. The gamut of different building types is vast in the commercial market.
As is to be expected, location is a major factor in determining the worth of a particular piece of land or office building. A plot near Madison, WI or in a another large city in an active office park, for example, is going to be worth more than a plot out in the country some where in Columbia or Sauk county. The same is true with residential: location is everything (almost).
One thing you don't want to do if you are thinking of selling your office building or lot is to march ahead blindly without having any idea of what you might be able to get for it on the market. This is where it can be crucial to recruit the help of an appraiser or realtor with experience selling businesses How to value commercial property is something that is best left to the experts.
Instead of shooting from the hip, it's best to find someone familiar with commercial real estate value trends, and have them investigate the area surrounding your piece of land and determine what the fair market value might be.
Lots of people see the FSBO home sale option and want to apply those same DIY principles to selling office space, industrial buildings, warehouses and areas zoned for business use. It seems doable, and it can be done, but the amount of work involved and the end product - how much money the owner ends up putting in his/her pocket can suffer in the long run.
What many overlook is the amount of targeted marketing and market research that goes into developing a fast selling business real estate listing. Knowing how much the office building or lot is worth is a great first step, but you really need to take things several steps further by investigating the price of recent sales, the time spent on the market, how targeted buyers were attracted to the listing etc.
Snapping a few photos and slapping a FOR SALE sign up doesn't cut it any more unless you have a long, long time to sell, and you don't mind taking a hit on the lump sum you end up with when all the papers have been signed and a deal is finally made.
For a fast and accurate value estimation please submit the form on the right for a free quote. We'll use our network of commercial real estate professionals to provide you with solid and dependable information you can use to move forward with.