Learn how to sell your commercial property fast when you follow these steps. Our MANSARD team of experienced brokers created 5.5 tips you don’t want to miss.
MANSARD is a commercial real estate brokerage with expert agents in Massachusetts and New Hampshire that sell commercial property quickly. Our brokers maintain current networks, adeptly navigate system intricacies, and process paperwork efficiently, giving you the best chance to sell your commercial property fast.
Here are 5.5 tips that make sure you cover what’s critical to sell commercial real estate fast.
#1. Order title to sell your commercial property fast
Call your real estate attorney and order your title immediately. Your title report may take anywhere from 7-10 days to arrive, so it’s critical to get this done today. To sell commercial property quickly, identify the steps that take the longest and complete those first. Not all real estate attorneys respond in a timely way. Top commercial real estate companies work with attorneys who will respond immediately and treat your commercial property as a high priority. Contact a MANSARD broker, if you would like to learn more about real estate attorneys in New England who will put your commercial real estate sale first. Receiving your title in a timely manner will bring you one step closer to selling your commercial property fast.
#2. Sell your commercial property quickly with updated environmental reports
Update your environmental survey, if it is older than 6 months. Any well-paying buyer will want to ensure they’re not buying an environmental nightmare or taking on responsibility for unknown problems. To help sell your commercial real estate fast, provide an environmental report that is current, complete and accurate. When you make it easy for buyers to identify environmental risks and rewards, you remove the barriers of time consuming questions and negotiations that can reduce your chance to sell commercial property quickly. These reports can take up to 21 days to be delivered. The sooner you update your report, the sooner you’ll be in a position to close on your commercial property.
#3. Provide service history list to sell commercial property fast
Pull together all available history of HVAC, roof, parking lot, window, plumbing, electrical, elevator, and life safety replacement. Also include comprehensive service history records. Providing a list of all utilities and repairs demonstrates to buyers that past issues are clearly documented and this history will be available for reference when future services are needed. How will this help you to sell commercial real estate fast? This one’s third on the list because it will help you sell commercial real estate to a buyer that can quickly understand what they’re taking on. Buyers who are ready to purchase want information about service updates so they can estimate how much they will be spending on repairs or replacements in the future. The more organized your service history is, the easier it will be to refer to your documentation and quickly answer questions from buyers.
#4. Organize rent roll, profit and loss statements
Organize your rent roll and prior 2 years of profit and loss statements. If you have tenants in the property, your rent roll will define the length of term remaining on their leases. Make it easy to identify other sources of revenue from cell towers, solar arrays, and signage. Selling commercial real estate fast requires buyers to accurately calculate potential profit and loss, in a short period of time. Buyers will want to complete a cost-benefit analysis of this potential purchase, taking into account current market conditions. The expenses listed in the profit and loss statements will demonstrate to your buyer how the annual operation of the commercial real estate works. When a buyer can quickly understand the profit margins to be gained, they will be motivated to complete the deal in a timely manner.
#5. Choose a cash price to sell commercial property fast
Set a cash price and with this information, you’ll be able to close in as little as 5 days. Beware and be careful if your buyer plans to place financing on the property. Unless the financing is private money or bridge capital, your buyer will need time to complete an appraisal, loan committee review, and the paperwork necessary to close the loan. This process could take up to 30-60 days to complete. Selling commercial real estate fast typically involves attracting cash buyers who are already prepared to make a cash offer. You can sell commercial property quickly with minimal negotiations when your cash price is predetermined.
#5.5. Contact a top commercial real estate agent
If you don’t have a buyer ready to purchase your property, call your favorite commercial real estate broker. Tell them that you want to sell your commercial real estate fast. Any commercial real estate broker experienced in commercial real estate sales will have a list of active, well-qualified buyers ready to close fast on a great piece of commercial real estate.
When you have questions about selling your commercial real estate quickly, we have answers. Contact an expert real estate broker at MANSARD. Our team is ready to sell your property quickly and efficiently. We understand the steps required to close a sale in the time frame you want, at the price point you set.
Get an accurate commercial property valuation to find out how much your commercial real estate is worth.
Frequently Asked Questions About Commercial Real Estate Brokerages
I utilize a variety of strategies to bring buyers to the deal. I have access to a strong and vast network of industry professionals. I have relationships with buyers and others who refer clients to me. Additionally, I use LoopNet, MLS and Costar and other online resources.
We are commercial property agents and do not provide legal advice. We do, however, work with skilled and experienced real estate attorneys and seek their counsel as necessary.
Commercial property brokers need information from their clients. For example, a commercial broker will ask their clients to provide important details about the history of the property and other facts crucial to its sale. Open and responsive communication makes selling a commercial property much easier.
The length of time it takes to sell a property is dependent upon many factors, like the amount of due diligence required to get the property ready to sell. A sale typically averages 6-12 months in the bidding process.
A 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred.
Your broker will consider many factors such as the location of your property, the year it was built, the type of property, and the size of the property. Your broker should be taking a market approach, which means they are looking at recent sales of other properties that match many of the characteristics of your commercial property to determine the sale price.
Properties are broken down into three classifications. Each property classification reflects a different risk and return because properties are graded according to a combination of geographical and physical characteristics. These letter grades are assigned to properties after considering factors such as age of the property, location of the property, tenant income levels, growth prospects, appreciation, amenities, and rental income. There is no precise formula that dictates which properties are placed into which class. Grade A space is the most expensive and presents the least amount of risk. Conversely, Grade C is the least expensive but has the most amount of risk. In most instances, it would be cost prohibitive to try and invest enough money into your property for the purpose of moving it up a grade.
There are important benefits to working with a commercial property broker. An experienced and astute broker will have strong relationships with other industry professionals to help locate buyers, will thoroughly understand market trends, and has tried and true marketing techniques and resources.
Agents get paid by the property owners via commission. An agent’s commission does not affect the purchase price.
I am a Certified Commercial Investment Member (CCIM). The certification is designated for those recognized as experts in the disciplines of commercial and investment real estate. With over 19 years of successful experience as a broker, I have brokered the sale of over 1,000 properties.