A client of mine is considering buying a commercial building at auction. I know nothing about this, and am looking for some help or guidance from other entrepreneurs to help her. It is a former Save-Alot store, 22,970 square feet, lender ordered sale, 2% broker participation, 10% buyer premium, 20% due at time of sale, balance in 30 days. Most likely, once I get the approximate price figured for her based on other businesses operating in the area and the marketing analysis of the high competition, she will not even go to the auction. The question is how to explain the purchase process to her. Can she have a buyers agent help her devise her bid? Is a lender ordered sale a bad idea or a good potential bargain? In general, if you had a client who was considering buying this way, would you advise for or against it?
Just for background, I am a Small Business Consultant, specializing in startups and growth strategies for existing businesses, and my forte is definitely in sales, marketing and business structure, not real estate.
Thanks in advance for your comments!