Are you wondering how to sell a commercial property? Well, if you do not have experience in this field, there are a few things you may want to know in order to sell it in the right manner and at the proper price.
The commercial sector varies greatly to the residential field, but they are similar in that they involve huger risks. Typically, the commercial property provides higher returns than residential property. According to statistics, the commercial property market has provided double-digit returns in the past few years. However, these returns were above long-term trends and so, it is imperative to be wary of expecting unrealistically high returns.
A commercial property can take months in the market before a new investor acquires it. Factors such as selling price, promotion, and presentation can have an impact on its ability to sell fast. Even in the waiting game, it takes just the right approach to properly sell a commercial real estate.
That being said, here are some tips to keep in mind when trying to sell a commercial property.
You will need to have all the required documents and information at hand. This includes bills, tax information, permits, previous leases, title deed, environmental studies, past appraisals and much more. Gather all this information early enough as you are going to require it later on.
Don’t withhold any information from potential buyers. Ensure that the substantial issues are put to the light. Mention them during the viewing sessions and e honest about the details of the commercial space. It will spare the future tenants from hurdles.
Ask Possible Buyers What They Want
It doesn’t hurt to inquire about the needs of the potential clients. BY asking questions, you can give out more information regarding the property. No one wants to move into a space they are not familiar with, so acquaint them with the details and explain what they need to comprehend. Always aim to meet their requirements.
Commercial Property’s Condition
If you want to sell quickly and at an ideal price, you will need to have your property in perfect condition. Here are some things to look at:
- Windows- The first recommendation would be to replace any broken or cracked windows. Consider the age of the commercial property as well. It might be due for more energy efficient windows. Ensure that they are clean as well.
- Landscaping- You would be surprised by the number of property owners that don’t keep up on this. If your real estate has large trees and bushes, it might be the perfect time to trim them. It ideally helps to keep the grass short, healthy and looked after. Depending on how fast you wish to sell, you may want to take this point seriously and use a professional team for the job.
- The Roof- Just like your home, this is one of the most critical aspects of a commercial property. Consider what you want a roof to look like if you were purchasing the property. Repair any missing tiles or shingles and even flashing if required. Depending on the age of the roof, you may want to think about replacing it.
- Parking Lot- This is perhaps the most overlooked aspect when it comes to dealing with commercial property. If overly neglected, it could set you back thousands of dollars to seal it or do a replacement. Don’t allow this to happen to you. An excellent parking lot will show that you know how to take care of a business. The last thing you want is a potential investor driving into a pothole when visiting the commercial space.
- The Exterior- Give your building a proper power washing for a fresh new look. |This is also an excellent time to check out the windows. If it’s located in an urban area, look for graffiti and other eyesores that have the potential to affect the building negatively. It could also be a good time for a fresh new coat of paint.
Properly Present the Property
Most people usually buy with their eyes. From a listing that shows the photos and details of the space to physical visits, the property needs to look exceptional. Chances are most potential buyers will need a space that’s accommodating. So, do not forget about maintenance and those repairs. The details in all listings should be accurate and cohesive.
Let the world know that you have a property on the market. Attract possible investors by maximizing the exposure via various mediums. Utilize online advertisements, post a listing online and even send an e-mail blast.
Traditional marketing methods such as flyers, trade fairs, word of mouth promotions and brochures also help in the selling of a commercial space. Ensure you maximize all the resources and methods.
Set the Ideal Price
Don’t overprice your property. The potential buyers already have an array of properties in their hands. If you want to sell quick, rate your space competitively.
Keep in Touch with Potential Investors
Time is always of the essence and so, you ought to make a habit of following up on your potential buyers to ascertain you’re not waiting in vain. A duration of a few weeks is adequate for them to have explored the market and make inquiries with other sellers. Urgency helps, so value the possible buyers while being diligent with time.
Use a Broker
Connections are essential in the real estate market. Utilize the help of a professional broker such as a Philadelphia Remax Realtor, to spare you from the hurdles of selling. Real estate experts know how to market a commercial property, locate the right investors and maintain healthy relationships with the clients.
State the Benefits
These are best when experienced first-hand, but it doesn’t mean you can’t share how the commercial space has helped you. It isn’t hard selling. When possible buyers get a feel for how much you admire the convenience the property provides, they instantly become curious. This way, the property will leave a mark in their minds. So, state the not so obvious benefits such as career and personal growth stories.