Should we get a second opinion on our commercial listing price?

Marlon, two years is a long time to keep hearing the same story, and the detail I'd sit with is those deadlines that keep sliding with no explanation. A brokerage confident in its price defends it with data instead of extensions. I'd order an independent appraisal from a commercial appraiser with no ties to the firm before you respond to any more offers. It costs real money and it's worth it here, because right now every number you've seen has come from the same building. Once the report is in, compare it quietly against what they've told you and decide whether this is a soft market or a pricing habit. Check your listing agreement's expiration date before talking to a second brokerage, since exclusivity usually blocks a parallel listing. I'm licensed in California, so have a commercial broker or attorney in Duluth confirm the local pieces. Alla Novytska, Realtor®, JohnHart Real Estate, DRE #02254775

Marlon, any one of these options might be good options but keep in mind that over the last several years, the commercial market has been correcting in most states and therefore recent comps are of upmost importance. This is also taking place in most states in relation to the residential market as well. Keith Jean-Pierre Managing Principal The Dapper Agents Real Estate Operations in ALL 50 States

Marlon, get the independent appraisal, that part everyone here agrees on, and I would too. One thing to add: the detail that a colleague at your own brokerage separately valued a sister property similarly low. Ask the brokerage directly whether in-house valuations get cross-checked by anyone outside the listing team, or whether it's the same small group pricing everything they touch. That's a fair, non-adversarial question, and the answer tells you whether you're looking at a pattern or a coincidence. On switching brokerages, don't wait for frustration to force the decision. Pull your listing agreement today and find the exact expiration date and whatever notice you're required to give if you don't want it to auto-renew. Missing that date can lock you in for another term without meaning to. Calendar it now, independent of what the appraisal shows. Zoltan

Yes to the independent valuation, and do that first - but the reason to do it first is that it's the only step here that produces an objective answer, and every other decision gets easier once you have one. Right now you're comparing your read of the comparable sales to your brokerage's read of them. That argument has no end. An appraisal from a qualified commercial appraiser - ideally MAI-designated, and with no relationship to your brokerage - settles it. It doesn't breach anything, it doesn't require you to confront anyone, and it either confirms their pricing or it doesn't. On a commercial property that has sat for two years, it's money well spent regardless of what you do next. Then have the direct conversation, with the managing broker, in writing. Not the agent, and not by hinting. Ask for four specific things: the comparable sales supporting the current pricing and how each was adjusted; a written marketing report covering where it has been listed and syndicated, inquiry and showing counts over time, and who has been approached directly; a written explanation of each deadline extension, because repeatedly extended without explanation should become explained or it becomes a different problem; and if the property is income-producing, the cap rate used to price it and the source for that rate. The quality of those answers will tell you a great deal. A brokerage doing the work can produce all four without much trouble. Before you consider a second brokerage, read your listing agreement. The term, the expiration date, whether it's exclusive, the cancellation terms, and the protection clause all govern what you're able to do right now. You generally cannot engage another brokerage to market the same property while an exclusive agreement is in force, so the calendar matters more than the impulse. On the thing you're circling but haven't said. The pattern you describe - offers consistently below what comps suggest, extensions without explanation, and a related property valued low by a colleague at the same firm - could be a genuinely soft market for that asset type, a marketing failure, or something that warrants a closer look. I can't tell you which from here, and I won't speculate about people I don't know. What I can tell you is that an independent appraisal plus a written record turns a suspicion into either reassurance or documentation. If it becomes documentation, the route is your state's real estate licensing authority and a commercial real estate attorney, not an argument with your agent. One thing not to do: don't accept an offer you believe is below value because two years of frustration has worn you down. That's the most expensive way this ends, and it's exactly what a long listing period pressures people into. Last practical note: commercial comparables are thin almost everywhere, so a defensible price usually rests on a blend - sale comparables, replacement cost, and an income approach where there's rent. If your brokerage has been pricing off only one of those, that alone may explain the gap without anyone having done anything wrong. I'm a real estate broker, not an appraiser or an attorney, and I'm licensed in Alabama rather than Minnesota. Get the appraisal from a local commercial appraiser and have a Minnesota attorney read your listing agreement before you make any move on the brokerage relationship. Dustin Woodley, Camelot Properties, LLC - serving Montgomery, Prattville, Millbrook, Wetumpka, Pike Road, Auburn, Opelika, Lake Martin and the Tri County River Region area.

Marlon, after two years of marketing, multiple offers below the value you believe comparable sales support, and repeated extensions of firm deadlines, I would get an independent valuation before accepting another lower offer. It could be approached in this order: First, get an independent opinion of value from someone who is not affiliated with your current brokerage. For a commercial property, that could mean a qualified commercial real-estate appraiser or an experienced commercial broker who regularly handles the specific property type in your market. A formal appraisal and a broker's opinion of value are not the same thing, so be clear about which you are getting. Next, ask the independent professional to explain the valuation rather than simply giving you a number. You want to see the comparable sales, adjustments, income analysis if applicable, current competing properties, market conditions, and the reasons they believe buyers would or would not pay your target price. NAR's Code of Ethics says REALTORS® preparing opinions of value should be knowledgeable about the property type, have the information necessary to formulate the opinion, and be familiar with the relevant area. Then compare that independent analysis with your current brokerage's pricing recommendation. If two genuinely independent analyses support your current price, you have stronger evidence that the property may simply need more time or a different marketing strategy. If both point substantially lower, I'd take that seriously even if it is disappointing. The fact that a colleague at the same brokerage valued a sister property similarly low is worth considering, but I would not treat that as proof of either a problem or a correct valuation. The important question is whether the valuations are supported by independent market evidence. I'd also ask your current broker for a written explanation of the two-year marketing history: number of inquiries, showings, offers, pricing changes, feedback from prospective purchasers, competing properties, and why deadlines have repeatedly been extended. That can help distinguish between a property that is overpriced and one whose marketing, positioning, financing assumptions, or buyer pool may be the problem. Finally, review your listing agreement before engaging another brokerage. You may still have contractual obligations to the current broker, including an expiration date, termination provisions, or potential protection-period provisions. I would not accept another substantially discounted offer solely because you've been on the market for a long time. At the same time, I wouldn't reject it solely because your own estimate of value is higher. The goal of the second opinion is to establish what the market is actually supporting and then decide whether the problem is price, marketing, property condition, terms, or the market itself. NAR's professional guidance also recognizes that a REALTOR® should recommend an appraisal when the broker cannot adequately advise on value because of limitations in experience or knowledge of the property type or market. We are not attorneys, and this is not legal, appraisal, or financial advice. Because this is a commercial transaction, you should consider having a qualified commercial appraiser and appropriate legal and financial professionals review the property and transaction before making a decision to accept an offer or terminate/change your brokerage relationship.

Marlon, after two years of marketing, multiple offers below the value you believe comparable sales support, and repeated extensions of firm deadlines, I would get an independent valuation before accepting another lower offer. I'd approach it in this order: First, get an independent opinion of value from someone who is not affiliated with your current brokerage. For a commercial property, that could mean a qualified commercial real-estate appraiser or an experienced commercial broker who regularly handles the specific property type in your market. A formal appraisal and a broker's opinion of value are not the same thing, so be clear about which you are getting. Next, ask the independent professional to explain the valuation rather than simply giving you a number. You want to see the comparable sales, adjustments, income analysis if applicable, current competing properties, market conditions, and the reasons they believe buyers would or would not pay your target price. NAR's Code of Ethics says REALTORS® preparing opinions of value should be knowledgeable about the property type, have the information necessary to formulate the opinion, and be familiar with the relevant area. Then compare that independent analysis with your current brokerage's pricing recommendation. If two genuinely independent analyses support your current price, you have stronger evidence that the property may simply need more time or a different marketing strategy. If both point substantially lower, I'd take that seriously even if it is disappointing. The fact that a colleague at the same brokerage valued a sister property similarly low is worth considering, but I would not treat that as proof of either a problem or a correct valuation. The important question is whether the valuations are supported by independent market evidence. I'd also ask your current broker for a written explanation of the two-year marketing history: number of inquiries, showings, offers, pricing changes, feedback from prospective purchasers, competing properties, and why deadlines have repeatedly been extended. That can help distinguish between a property that is overpriced and one whose marketing, positioning, financing assumptions, or buyer pool may be the problem. Finally, review your listing agreement before engaging another brokerage. You may still have contractual obligations to the current broker, including an expiration date, termination provisions, or potential protection-period provisions. I would not accept another substantially discounted offer solely because you've been on the market for a long time. At the same time, I wouldn't reject it solely because your own estimate of value is higher. The goal of the second opinion is to establish what the market is actually supporting and then decide whether the problem is price, marketing, property condition, terms, or the market itself. NAR's professional guidance also recognizes that a REALTOR® should recommend an appraisal when the broker cannot adequately advise on value because of limitations in experience or knowledge of the property type or market. We are not attorneys, and this is not legal, appraisal, or financial advice. Because this is a commercial transaction, you should consider having a qualified commercial appraiser and appropriate legal and financial professionals review the property and transaction before making a decision to accept an offer or terminate/change your brokerage relationship.