How to Sell Commercial Real Estate: Insider Tips and Tricks
The time has come for you to place the commercial real estate property that you own up for sale.
Maybe your business has grown so much that it no longer fits into the property that you own.
Perhaps you see potential in moving your headquarters to a new location.
Whatever the case may be, you’re ready to take the current property off of your name and move on with focusing the future location.
There are several key factors to consider when you sell commercial real estate. Be sure to read this list and consider everything you need for your particular situation.
1. Have an Expert on Your Side
Unless you have a real estate side hustle, you probably have no previous experience with commercial real estate and the process of selling it.
There are a lot of essential details about selling commercial property and getting the maximum return of what you initially paid for it. If you skip out on even one step, you could miss out on a substantial amount of money.
That’s why it’s vitally important to have an experienced commercial real estate broker on your side. Someone with the experience and knowledge you desperately need.
More importantly, they can bring the buyers to you, rather than you hoping someone stumbles upon your property at some point in the near future… you need the money now!
you can expedite this entire process and increase the likelihood of a closed sale by adding a broker to your team. It’s a no-brainer!
2. Have the Documentation Ready
As with any other aspect of your business, there are certain pieces of finely-worded paperwork you’ll need for any potential buyer.
This is also to get yourself up to speed with the process, your right’s as the current owner, and to protect yourself at the point of purchase.
Essential documentation includes things such as your title deed, building permits, list of tenants (if you’re renting it out to a business currently), leases, and tax information.
All of this information proves valuable to the next potential buyer and gives you credibility.
Sure, you want to sell the property fast and get as much in return for it as possible… but you also want to set the next owner up for success!
Having the proper documentation ahead of time will help expedite the process and get you to the point of purchase that much faster.
3. Gauge Your Price Range
You may have an idea of what you’d like to sell your property for, but may not be sure if that’s a logical price or not.
There are several ways to gauge what a fair price is for your commercial real estate. One of the most effective ways is to view similar properties to yours and what they’re selling for.
Look up features such as square footage, location, amenities, renovations you’ve made, office layout, etc. to see what they’re going for.
Not all properties are created equal, so don’t sell yourself short just because a property similar to yours is selling for a certain price. That property could have baggage such as bad tenants or poor infrastructure that’s tarnishing its price.
Take what you find and bring it back to your broker, they can inform you of whether your selling price is too high, too low, or right on par with its value.
4. Proper Communication with Interested Parties
If you come through on step 1 and hire a commercial real estate broker, they’ll take on a lot of the communication responsibilities between yourself and potential buyers.
However, it’s still important for you to be readily accessible to anyone interested in purchasing your property.
They may have questions that they feel more comfortable asking you directly.
Mentioning things like the expected cost of monthly bills, history of leases, any renovations you made, etc. can be valuable information. It helps set the expectation of the situation they’re walking into.
As far as the negotiations, your broker will be the one to discuss terms and value with either the potential buyer or their buyer agent (if they have one).
You only have two responsibilities during negotiations: 1) letting your broker know your ideal selling price and 2) agreeing to terms once you find a price you’re comfortable with.
5. Make Necessary Tune-Ups
Possibly the most valuable information that your broker will bring you is their input on what needs to be fixed or tuned-up before selling your property.
You can’t maximize your return without investing a little in fixing up small things.
Things like a new coat of paint or fixing any wall dents are an inexpensive way to make the place look brand new. It will show the potential buyers that you’ve taken care of the location and are always ready to fix things as needed.
Many commercial real estate owners fear to ask their broker for feedback out of fear of what the answer might be
But you have nothing to be worried about. They aren’t going to tell you to renovate the office kitchen or put in new carpet. Let the next buyer worry about those things.
How to Sell Commercial Real Estate: Get an Expert on Your Side
Now that you’ve seen the proper steps to sell commercial real estate, it’s time to team up with a knowledgeable broker.
Having one will make the entire selling process far easier, you’ll have less to worry about prior to the sale.
Be sure to read up on how to sell for the right price and get as much money in return for your property as possible.
For more inquiries, request a consultation and we’ll be happy to assist you further!