Business Law – How Do I Know If The Seller Is Asking A Fair Price For A Building?
- A selling price is a very subjective thing; however in a commercial setting when someone is selling an apartment building or a commercial building, generally a seller arrives at a selling price by multiplying the rent-roll, meaning the total gross rentals by a total number.
- Over the years with inflation etcetera, that number has gone up.
- When I first started practicing, it used to be about 6-8% of the rent-roll; now it’s about 11-12%.
- Everything is negotiable.
This short informational business law video was provided by Arnold Drucker, an experienced Jackson Heights Business Lawyer.