I ahave one acre on a major intersection. Presently there is a 7 unit apartment building on it. But the land is worth something separate from the building. Can I list it as land with a disclosure that the building be raized if sold as land? I have it listed as commercial 5-9 units now but trying to find the best way to do this thing. Personally, the building should be raized, but trying to tell the owner that is nigh to impossible.

2004Ferne,
You desperately need to take CCIM Intro class. It seems that you are jumping neck deep in commercial with no experience or training in commercial. I base this on the question content you have posted. Is your broker of no help in this area? JMHO but you are not serving your clients best interests by not getting some immediate commercial training.

That said have you done a CMA on the property in its current state and as just land minus the cost of DEMO and cleanup of the existing building?
Have you factored in the lease terms into this?

For what possible benefit is it to the current owner to level a building that is providing him Income! It may be beneficial to the new owner to raise the building and put up something else such as a restaurant or gas station if it is a busy enough intersection.

You cannot list the property for 2 different prices which appears to be your intent. Either list it as land with the costs of demo and cleanup factored in or as an apartment building which ever has the highest and best use.

I'm sorry I asked...I'll make sure not to do it again .

I have it on the market as an investment apartment building. At the moment that's the highest best use. I'm just thinking ahead and I DIDN'T list it with 2 prices. I have entered it under MLS as Multi family and then again as land.
I am not talking about 2 differnt prices and "It may be beneficial to the new owner to raise the building and put up something else such as a restaurant or gas station if it is a busy enough intersection.." yes, you have that right. That is how I'm looking at it. I just asked for information, not a lecture. I resent it. Further more, when you put initials down for a class you might consider spelling it out...apparently I'm so stupid I don't know what it means.

I did not say you did list at 2 prices just that you have not determined which is the highest and best use of the property. The current use may or may not be the best use. How can you possibly say you are fully representing your client and you could not understand why a client that is getting rental income from a property would not want to tear that building down.

In regards to the class initials it is CCIM Intro that would be Certified Commercial Investment Manager. You can also lose the attitude as I could care less if you resent the truth. I simply said you need to take that class or get some TRAINING in commercial properties before you do something that may cost someone a deal and ethically you are not fully representing your client with your current knowledge of commercial real estate.

What I am telling you is if you want to sell commercial that is great but get some training because it is an entirely different ballgame than residential. It appears that your broker is not much help and if you really want to do commercial then find a commercial broker that can give you the support you need.

Everyone has questions but you have been posting questions regarding different clients and different properties. Like your restaurant guy! Did you get him to a new commercial lender since the one he had was an idiot!

This bank has said they will only do $300K, he has 100K into it but the leases are not bringing in enough to make up the difference. We could not get him a new commercial lender because any bank would have come up with the same appraisal. So, the deal went south..as he didn't want to start over again. He'd already lost the appraisal money he's paid. He and his attorney are in the process of trying to negotiate his P&S money back.

We're not talking big money here...the building's value is only $475. I also was a dual agent in this deal so a lot of my advice had to be carefully given.
I am not into doing commercial buildings in the hundreds of thousands of dollars. I only have the occassional one of 5-9 units, or this deal. They are looking for what I can give. I can advertise in the same places everyone else can but I need to know some of the answers and since I tend to think ahead will I come up with some questions that might make you think I'm totally stupid. I agree a class would be helpful but I'm not going into this fully time..that I reserve for my residential business. These properties are advertised on MLS just like any other however, I can gt them into Loopnet and put them in other states. I'm not interested in puttingin a lot of time on commercial property. So, again, sorry I aksed the question..the forum has been helpful in suggesting another lender, etc., etc. Remember we started out iwth this building as the appraiser not giving anything for it because he wanted the walls put up....It's been a tough deal because of other mitigating factors that need a different forum. I still hope others on this forum will help me out when they can. Thanks.

Please reread my earlier message on the tearing down of the building...I absolutely DID NOT think the owner sould tear down the building. I was asking if the property should sell as land too...meaning the new owner would find a better value in the land rather than the apartments, which bring in only $55K a year GROSS! I am only looking for a better way to market this property, not tear down buildings however, the building was built in 1810 and the conditiondition of units is relative. I feel it should be brought down and hope a new buyer will do that. I was only "thinking out loud about things.I'm not trying to break into a market as you say...nor am I after other commercial peoples makrket by having 1 or 2 of these a year. I've only discussed my 2 with you and they're VERY insignificant compared to the real commercial world.

A different lender would have been able to get the deal done. Previous appraisal would not have mattered. The lender and appraiser were both idiots. Obviously this appraiser does not grasp that the interior walls on a commercial space mena nothing especially for a restaurant owner cause he would have been gutting the interior of the building to suit his plan. Commercail deals are not like FHA or VA deals where that appraisal just hangs on the property for months and by not knowing this you failed to serve both clients in this non-transaction. This shows my point that lack of training on your part can hurt your clients interests.

As far as the other deal with the terrible appraiser...spoke with his bank ANDd his appraiser on several occassions and they said their investors set the rules and there was no way they were going to send out another appraiser unless the buyer paid for it or I was welcome to pay for it. I did get another lender for the buyer to speak to, I suggested he call on the day I gave it to him...next day I asked if he had called and he said no, at wich time I told him I would be unable to help him out if he wasn't going to call the people I give him....my thinking is he wants out of the deal and I really don't think I short changed anyone..this would have happened to anyone,but maybe not to some man who's been doing commercial for 35 years. You're right, I don't have that experience. I look at the facts and the facts were unavoidable on my part. IF I could have done something better then tell me what it was.