Buist Richardson’s Bargain Sale Experience
The one thing that every business owner wants to know is that they are making sound financial decisions. This is especially true for small and medium sized business owners. Many business owners will want to relocate to a new city or state in the life of their business. However, this usually leads to a bit of confusion. The question is: what do you do with the buildings and property that have been acquired over the years?
Many business owners like to make the most of the sale of their unused or unnecessary buildings. One of the best ways to do this is through an IRS Section 170 Bargain Sale also known as a Bargain Sale. One person that knows this too well is Buist Richardson.
Richardson is a 33-year veteran in the real estate industry and works for Avison Young. He specializes in commercial and industrial properties in Nashville and Middle Tennessee. He knows of the Bargain Sale experience, but he has only directly participated with a Bargain Sale in the past.
Welfont specializes in the entire process of the Bargain Sale.
Richardson’s Introduction to Bargain Sales
One of his clients heard about the transactions, and decided that a Bargain Sale experience was just what he needed. While Richardson was not part of the day-to-day processes of the deal, he was available as needed. The property involved was an old industrial property in Pulaski, Tennessee.
The 224,000-square-foot property was built in 1965. And the property had been added on to multiple times in the past. The property had obviously aged. Richardson said the building was, “very old, tired, and run down”. As the local broker for the property, Richardson received a call from a Welfont representative, who proposed the Bargain Sale to him. After consultation with his client, he got the green light to start proceedings on the sale of the property.
One of the main concerns that his company had was the appraisal of the property. Before any building can be sold in a Bargain Sale, an appraisal determines its market value. The main concern was that the appraisal that the city had provided was “about as high as you could take the property”. However, Richardson was assured that with the right MAI appraiser, they could get almost double what the city had promised. The appraiser in an IRS Section 170 Bargain Sale transaction should have experience with such transactions and should follow the guidelines found in the IRS Publication 561.
The one thing that Richardson is happy about is the professionalism of the Welfont representative that he worked with. Welfont guided Richardson and his client through the appraisal process, ultimately completing a Bargain Sale. The tax deductions helped Richardson’s client to go with the Bargain Sale. In this transaction, the property is usually sold to a nonprofit organization at a lower-than-market rate. Thus, the owner may save a considerable amount of money that would have been paid in taxes.
So Mr. Richardson had a very positive Bargain Sale experience. There are still many people that do not know about Bargain Sales. However, the transaction is growing more popular. And every year, at least 20,000 Bargain Sale transactions deals close. The transaction has closed in over 30 states across the U.S. Welfont completes $200 million plus in 1031 Exchanges/Bargain Sales.
Learn more about the IRS Section 170 Bargain Sale here. Then contact Welfont to guide you through the process.