Experience in Paying List Price on Recent NC Commercial Property

[Artie Kamiya]

I'm in the process of identifying a few North Carolina commercial properties in the $700,000 - $1,200,000 price range. In general, what has been your experience in order to get the winning bid? 10% over list? 15% over list?  Just wondering since I'm using a 1031 exchange in the coming months. Many thanks!

[Don-Carlos Moniz]

Artie,

List price should be a secondary consideration (or lower).  Run your numbers and make your offer based on that underwriting.  Buying the wrong property can cost you more than the tax hit.

Most commercial properties with a list price are either priced at or over value - with the latter being more common.

If you are way off the list price, you may want to move on to the next property.  It may be that the seller has unreasonable expectations of the property's value.

Good luck, and if you have any questions, don't hesitate to ask.

Don