Warehouse Buildings For Sale – Increase Your Profit Margins By Selling At A Higher Price

Warehouse Buildings For Sale – Increase Your Profit Margins By Selling At A Higher Price

Selling commercial real estate and properties is quite different as compared to the sale of residential properties occupied for accommodation purposes. In case of residential types of properties, one deals with homes such as apartments, condominiums, duplexes, mobile homes, etc. Commercial properties can include retail stores, office buildings, warehouses, etc. One incurs tax when one sells one’s property, and the taxation pattern for commercial property types is different compared to residential properties. People invest in commercial properties with the main objective of earning a good profit from the asset in the future.

There’re several reasons why owners desire to sell commercial properties – some individuals experiencing a financial crisis might decide to sell their commercial properties to pay off their debts, while some might be getting a good price for their property, and might decide to reinvest the sale proceeds into other commercial and profitable ventures. A warehouse is a commercial property which fetches a good profit when sold at the correct time, and in the right manner. Owners advertising their warehouse for sale are often unawares about the various factors that affect and control the price of their property, and at times don’t receive a good price for their asset. It’s important to know about such factors, and how they’re likely to affect the sale of your warehouse. That way it becomes possible to avoid a potential loss from occurring while selling your property. Two of the major factors affecting your warehouse sale are the valuation and your warehouse’s cap rate.

Valuation: Whether you plan to sell your warehouse, or just advertise your warehouse space for sale, the valuation of the property is instrumental in deciding the actual market value of your asset. Property sellers and real estate investors generally determine the property value based upon what price similar properties are being sold for in the same area. However, it’s recommended you get a professional market valuation done for your property from a government approved real estate agent, or other real estate valuation agencies whose valuation process is accepted in the market. This can help you in deciding your warehouse’s selling price. Quoting a higher price would mean waiting for a longer time to sell your property, while fixing a lesser price will ensure a quick sale but you tend to suffer a certain monitory loss in the process. Getting the correct valuation done for your property can help you in working out a selling price that’s competitive and affordable for the buyer, and also ensure you don’t suffer any loss.

Cap Rate: Commercial properties are investment oriented – the owner is interested in knowing for how much the property is actual worth in the market. The cap rate is the capitalization rate, and is a percentage figure that compares what the property is actually worth in the market, and for how much it should be sold. While thinking about buying warehouse buildings for sale, buyers and investors generally determine the warehouse’s cap rate before offering their price. To find out the cap rate of your property, you need to divide the net operating income of the property by your “asking” price in which you plan to sell your asset. For example if your warehouse’s net operating income is $200,000, and your asking price is $2,000,000, the cap rate would be 10%. It’s important to know about the cap rate of your warehouse while determining your warehouse’s selling price. It’s a good way of deciding how much profit you desire to earn from your warehouse’s sale.