Selling residential and commercial real estate is not the same. In this article, we will describe peculiarities and tips to sell your commercial property at the best price.
Options for sale
Let’s start with a question of how you can sell your commercial property? There are three options to sell it. First is to sell it via auction. Second is to give this work to a commercial real estate agent. The third is to do it yourself. All these options have some advantages and disadvantage. However, we advise you to hire an agent, and we will explain why.
Choose commercial real estate property, agent
Selling commercial real estate may be exhaustive and demand much knowledge. Of course, there are some things you can do yourself. However, we advise you to cooperate with a professional. Find an agent who is an expert in commercial and investment real estate. No doubt that it is better to choose the one who specializes in some specific field. Ask your agent if he or she has a certificate, clarify years of experience, and last successful transaction. A professional agent will do comparable reports, property valuation, boost the appraisal process, and hold negotiations. It will give you a chance to be more focused on other businesses.
Curb appeal and staging
Yes, curb appeal and staging are essential both for commercial and residential property. So, start with curb appeal because the first impression matters. Pay your attention to landscaping, signage lighting, and parking lot.
Don’t forget to make small repairs and de-clutter space. There is standard advice for both residential and commercial buildings. You need to help a buyer to visualize this space.
Documents and any information have to be accurate and up-to-date
Be sure that you have all the materials necessary to negotiate a deal. Keep in mind that you need to request your solicitor to send you some documents. This process will take some time.
Provide a buyer with rent roll. Sometimes, sellers do not want to make a rent roll public, ask your agent to show it to only seriously intended buyers. Here is our advice. If you note some difficulties with selling, study the tenants’ mix. Buyers prefer long-term tenants to short-term. You have time to fix it. It is also essential to provide a buyer with the information on expenses he or she will be responsible for. Also, check if everything is fine with the planning and building permissions.
A future buyer will send Commercial Property Standard Enquiries (CPSEs) to a seller. All the questions should be correctly answered. That is why it should be done together with the seller’s solicitor.
It will be a plus to do an environmental survey. The environmental survey will ensure a buyer that everything is excellent with his future property, and there are no surprises down the road.
Study the local market
Ask your agent to provide you with a comparable property report. It will help you to know the approximate price your property can be sold for. Sometimes it is impossible to find a similar property to compare. Then, Net Operating Income will show the value of your property.
You do not know what selling points an investor is searching for. Put your special efforts to highlight location and demographics. Show a prospective investor on how your business entity will generate income. Your property has some selling points for sure. Then highlight them!
Market your property using as many channels as you can. It will highly increase your chances to find your buyer. As a seller, use all your social media accounts to advertise your property. Ask your family members and friends to share your post about selling a property.
Use such online sources like LoopNet to reach prospective buyers and agents.
Unique and attractive signs will inform everyone that you are selling your property. It should be seen from the streets. Do not forget to put your mobile phone number.