Difference Between Distressed Commercial and Non-Distressed Prices
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John Reeder, our friend and colleague from the SVN | Mimi Song Realty Group in California, has graciously allowed us to share his article concerning distressed commercial property with you. Read on:
I have noticed among some people that I talk to that seems to be an odd distinction made between pricing for distressed and non-distressed properties. Or maybe the better way to put it is that there is a belief that is held by some that there is a difference between pricing for distressed and non-distressed properties. I've even heard some lobby groups attempt to advance the idea that appraisals should account for whether the property being appraised is like recent sales in terms of level of distress. I've always thought that there is something odd and illogical about this distinction. In my mind, the market price is the market price. Prices generally set to whatever level you have willing Buyers. Whether the property is distressed, or non-distressed, shouldn't really impact the price. I'll explain and also try to address an objection that I could see someone making in response to my thesis here.
To view the full article, please click here
John can be contacted at:
John Reeder
Sperry Van Ness | Mimi Song Realty Group
Cell: 951-847-6928 | Office: 909-989-8590 x 110
Reeder@svn.com
Article submitted by
Robert Yale, CCIM
Sperry Van Ness/ComVest Realty
508-351-7079
bobyale@svn.com
http://www.svndealbreaker.com/
Central Massachusetts Commercial Real Estate