How does the broker price my commercial or investment property?
Methods used to price a property vary and the method used depends on the property type. Income-producing properties are most often purchased on their cash flow. This requires the broker to make income and expense estimates which will be the basis for accurately pricing the property. Owner occupied properties require a comparative analysis of like property sales to the ‘for sale’ property. This requires the broker to review the market for recent sale transactions and current listings and then to formulate a price from the data. So whether your property is an investment or owner occupied, both require a skilled analysis by the broker.
