We get it. Selling a house or property can be a headache, and many people want the process to be as hands-off as possible. For some people, that means listing the house or property for sale “as is.” Selling a property “as is” essentially means that you want to sell a property quickly and without much additional work on your end.
As you might imagine, selling a commercial property “as is” has some benefits and some potential drawbacks. In today’s blog, we explore some of the pros and cons of selling your commercial property “as is.”
Benefits Of Selling Commercial Property “As Is”
Here’s a look at some of the reasons why someone may want to sell off their commercial investment “as is”
- Less Back And Forth - It’s generally simpler to sell your property “as is” because the buyer understands that you don’t intend to invest a lot of time and money into the property to improve its condition.
- Up Front Savings - Because you’re not spending a bunch of money on costly repairs or upkeep, you save a little money on the front end of the sale.
- Less Traveling - If your commercial property is located in another state or even another country, selling the property “as is” will help to limit how often you’d need to travel to the area to prepare for a more involved sale.
- Can Simplify A Co-Managed Property - If you own a commercial property with partners or your siblings collectively own some hunting land, it can be simpler to sell the property “as is” if it’s unlikely that all parties will put in the same time, money and effort in preparing the property for a more involved sale.
- Faster - The sale can be completed quicker when the property is sold “as is.”
- May Attract Competition - While it’s unlikely that a bidding war will break out on an “as is” property, many investors believe that deals can be found with these types of properties, and that could attract attention from a few different interested parties.
The Cons Of Selling Commercial Property “As Is”
There are some downsides to selling a property “as is” that you should be aware of. The main issues you’ll want to consider are:
- Lower Sale Price - Sometimes spending a little money to significantly improve a property can allow you to greatly increase your asking price. You’re unlikely to get top dollar if you’re unwilling to make certain improvements to the property.
- Scare Off Potential Buyers - While an “as is” property can catch the attention of some buyers, it can also be a turn off for buyers that don’t want a major project on their hands.
- Legal Issues -You are required to disclose certain hazards associated with a property. You may not need to fix them if the seller is willing to take on this burden, but if it comes to light that you were aware of certain issues and tried to hide them by selling the property “as is,” you can end up in legal trouble.
When people hear that a property is being sold “as is,” oftentimes their first thought is “what is wrong with it.” While some may see it as an opportunity, others may have this thought and either try to lowball the seller or be scared off altogether, so there is a public perception of “as is” properties that could be detrimental to some aspects of your sale.
Regardless of whether or not you want to sell your commercial property “as is,” if you want to avoid any potential issues with the sale, bring the team at Commercial Partners aboard. We will ensure that title defects or boundary issues won’t tank your sale. For more information on how we can assist with your next commercial acquisition or sale, reach out to our team today at (612) 337-2470.