Five Common Mistakes When Selling Specialist Airport Property
Our expertise in working with aviation real estate enables us to recognize patterns in the typical mistakes often made when selling specialist airport property.
PRICE: Every landlord wants to secure the highest price for their airport property, but overpricing it makes buyers eluctant to even start a conversation. A competitive price means more interest and activity, which bring results quickly. Being overpriced will leave your property unsold and the listing stale. Have you priced your airport property correctly?
FINANCIAL RECORDS: If you are basing your sales price on NOI (Net Operating Income), you need to have sound financial records to support the cash flow. Are expenses classified correctly? What are you depreciating and what are you expensing? Potential buyers will most likely bring a lender to the table to review all financial records to confirm the property’s cash flow.
PROPERTY LEASES: Long-term tenants are seen as much more valuable than month-to-month tenants, and most lenders will discount short-term leases very heavily and may not lend a buyer what you are asking as a sales price. Are your leases structured accordingly?
UNQUALIFIED PROSPECTS: It is a broker’s job to ensure each prospect is well qualified before you invest any time and effort into due diligence on your property. This includes financial ability and fit for purpose prospects. Do you know if your prospect can close the deal?
BROKER EXPERTISE: All brokers are NOT created equal. Hiring a commercial or residential real estate broker can often lead to problems because they don’t know the specifics as they relate to airport real estate. Is your broker appropriately qualified?
Airport Real Estate is committed to ensuring none of these mistakes happen for our clients. For those serious about leveraging our expertise to sell or lease Colorado airport real estate, call us today at 719-649-2688.