Selling a commercial building isn’t much different than selling a home or condo. We have compiled a few things you need to do before listing your commercial property. By taking these simple steps you can sell the property quickly and profitably:
What is a commercial property?
A commercial property can be a plot of land, an office building, a shopping center or an industrial complex. Generally speaking, any building that has the potential to generate income should be considered as a commercial property.
Before listing the property, you need to decide how much money you owe on it. You should also decide what financial terms you will accept.
Get the price right
If you are the owner, you will want to sell your commercial property for the best possible price. But setting the right price is essential. If the price is unrealistic, finding a buyer will be nearly impossible. Remember that most buyers are well aware of the current market conditions. They can easily decide whether you are asking for too much.
If you cannot find the right value of your property, you should get it appraised by a professional. A building’s net value depends on the amount of income it can possibly generate. And when you estimate the value of the building, you need to consider the expenses as well as the potential income.
Lending institutions will assess the property’s net worth to decide whether they should finance the transaction.
When it comes to commercial properties, the biggest USP is the location. If the property enjoys a central location where it has sufficient potential to generate income, it will command a higher price.
Promote your listing
Make sure that your listing gets enough coverage in different media. Advertise it on newspapers, magazines and internet. Also put up your ‘Commercial Property for Sale’ sign in an area where it will catch maximum public attention. You should also consider distributing marketing materials so that buyers will get a better understanding of the property.
List with a commercial broker
List the building or land with a commercial broker. The advantage of listing your property with a broker is that they will handle the initial screening. Brokers will assess whether the buyer is financially capable of buying the property. This initial screening will save you a lot of time. In addition, their commission is a certain percentage of the sales price. As a result, they will try to negotiate a higher price.
Be willing to negotiate
The seller can counter a buyer’s offer. Once the buyer and the seller have decided on a price, they should draft the sales agreement. This document should specify the closing date, terms of financing, and amount of earnest money deposit.
Fix all problems
Check the condition of the building before listing it. It might require repairs. Fix all issues – both major and minor – before putting the building on the market.
Don’t assume that you can spot all problems on your own. You will probably need to hire a general contractor or inspector to detect problems with the foundation, roof, plumbing or electrical systems. You will also need specialized inspectors to determine the presence of environmental health hazards. For example, the presence of lead, asbestos, and mold may discourage people from buying the property. The inspector will be able to suggest the measures necessary to remedy the problem.