Philip Baskaron

Broker

Foreclosure 

Information for Lenders

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If your bank or lending institution has foreclosed on a gas station property or if you are anticipating a foreclosure, we would like to talk to you about representing you in marketing the property quickly and efficiently.  Gas station sales tend to be complex given the issues of fuel monitoring and contamination risks, general employee problems, risk from shrink, oil company/supply issues, liquor board licensing and the related liability issues that come from selling beer and wine.

As you can see from the Buyer's Foreclosure Page (see Navigation Bar on the left side of this page), it is a unique buyer who can effect a quick sale, which, given the risk factors, is critical in these transactions.

Common Lender Pitfalls

1.  Not pricing the property realistically:  Our company monitors the value of gas stations on a daily basis.  We talk to buyers and sellers everyday.  We are frequently hired to provide expert witness testimony and court ordered valuations.  We know what these stations are worth.  Improper pricing can create significant delays and can result in a loss of tens if not hundreds of thousands of dollars.

2.  Closing the station.  Even with all of the problems associated with keeping the station open, closing it would result in a significant loss of value.  It is nearly always better to keep it open, and market it aggressively.

3.  Waiting too long to list the property--thinking that under the banks' ownership and management that the value will go up.  In today's climate, that would be highly unlikely. Ideally, it should go on the market immediately after the bank has taken title.

4.  Not choosing a specialist to market the property:  At the risk of sounding self-serving, it doesn't make sense to have an REO specialist or an accounting firm or a general real estate broker market a gas station property when we already have the specialized expertise and contacts to complete the sale quickly and efficiently.