Commercial Real Estate News / General CRE / Is It Possible to Sell Commercial Real Estate Yourself?

Is It Possible to Sell Commercial Real Estate Yourself?

Published: 11-11-21 Category: General CRE

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

multifamily housing underneath a blue sky.

If there’s one thing that we never grow tired of, it’s talking about real estate. But if you’ve got your eye on selling your real estate, you’re probably tired of talking about it. We get it; we’ve certainly been through the wringer when it comes to buying and selling properties. There just comes a point where you have a property on your hands that you need to be gone like yesterday, and the idea of working with an agent stresses you out.

So here’s the thing: commercial real estate for sale by owner is totally a thing, but that’s not the point of this guide. You’re here because you want to know if CRE for sale by owner is your thing. That’s where we come in to help.

You aren’t alone with wanting to sell the property yourself; according to Zillow’s most recent report on selling a home in America, over 49% of sellers that skipped over using an agent said they wanted to save money. Considering that the commissions in CRE are typically higher, this trend definitely carries over to commercial property.

The Trouble with Traditional Real Estate Sales with Agents

So here’s the blunt truth: selling any type of commercial property with agents is kind of a drag. In terms of speed, it’s somewhere above a snail but certainly below a convertible cruising down a stretch of pristine, unpopulated highway.

Can you get speed with an agent-oriented sales closing? Of course you can. Is it likely to happen? Not really. There are lots of paperwork in play, and for what it’s worth, there are parts of the real estate transaction that shouldn’t be slow at all.

One of the top reasons people look into commercial real estate for sale by owner (FSBO) is that they want to avoid paying out those commissions. If you’re the property owner, you’re the one paying the commissions to the agents at the end of the closing period.

Every dollar out means one less dollar in, so we don’t blame you for considering going the FSBO to save money. Is it really a savings? That’s what we’re looking at now. The outcome can be better than you think.

Benefits of FSBO

When it comes to the FSBO process, there are multiple benefits to keep in mind. We’ve listed these for you below:

You are in full control. From the list price to setting up tours, you get to decide the finer details of the sales process.
No agent conflicts. Let’s face it, we’ve all dealt with an agent that was…less than ideal. FSBO cuts out the conflict potential.
No listing agent commission. If you’re trying to keep money in your pocket, cutting out the listing agent’s commission is one way to accomplish this goal.

Understanding the benefits of this format helps you get your property ready for the next steps. You still have to make sure that you’re ready to market your commercial property on your own.

Drawbacks to FSBO

You have to know not just the benefits, but the drawbacks of doing FSBO. We’ve listed those below for you:

Missing out on key advertising. The marketing of a property is what drives its success. Can you market it yourself? Perhaps. But far too often a property can get lost in the sea of available places without a pro handling it.
The potential of a lower price. Buyers are very savvy, and they know that someone without an agent handling the sale may be willing to take a lower price just to get rid of the property.
You can’t escape all commissions. Most of the time, your buyer will come with their own agent, which means that you are responsible for a commission to them.
Time-consuming. All of the things your listing agent would normally do fall on your shoulders. If you don’t have a lot of time, FSBO is going to really give you a run for your money.

These drawbacks aren’t to say that you should never consider FSBO, even on a commercial property. As always, you have to weigh your pros and cons against your own situation. How bad do you need to move the property? If time is of the essence, sometimes it’s faster to get things moving yourself.

Tips for Pulling Off Commercial Real Estate For Sale by Owner

If you’re going to try on FSBO for your next property sale, there are a few points to keep in mind throughout the entire process. We’ve compiled a quick list of tips below:

Get help. Just because you aren’t going with a listing agent doesn’t mean that you should have zero expertise on your side. Having a real estate attorney well versed in commercial property is a great idea.
Tell everybody in your network. Even if you think no one in your current network is interested in your warehouse or other commercial property, you might be surprised.
Give yourself enough time to make it work. Commercial real estate can take time to move, especially if buyers are feeling nervous about making purchases.
Be honest to a fault. If you’re trying to get the property sold, being upfront about what repairs are needed is a good idea. Commercial buyers are pretty savvy, and they see a lot more than you think.

Going with a for sale by owner format puts you in the driver’s seat. Make sure that you’re keeping these tips in mind so that you aren’t leaving money on the table, or coming to the negotiation table without a clear idea of the end goal you have in mind.

Considerations for the Future

Is it possible to sell commercial real estate yourself? Yes, it is definitely possible. Should you turn over your storage facility, warehouse, or other commercial property to the FSBO process? It’s been our experience that you’re paying for the transaction one way or the other. In other words, if you’re seeking FSBO to avoid commissions, you may find that you really have earned the sale of the property through extra effort that would have been avoided going the traditional route.

We get it: in this uncertain real estate market, anything you can do to keep a few more coins in your pocket is definitely something to consider. However, you still have to make sure that the numbers make sense in your local market. Going with commercial real estate for sale by owner listings instead of an agent may leave you struggling to get the property moving.

Browse and List Commercial Real Estate for Free on MyEListing.com!

Investors, brokers, and agents can list and browse commercial real estate for free right here on MyEListing.com. Create an account to receive customized property type alerts and access to accurate market intelligence.