Anyone can put a commercial property up for sale, but not everyone can sell a commercial property for top dollar. Once you make up your mind to sell, your focus should be on how to sell the property at the highest price possible. Here are six tips to follow when selling your property to ensure you have a successful sale.
The exterior of your building can be a major selling point. Potential buyers and investors will be drawn to the appearance and welcoming atmosphere of your property. A great curb appeal gives buyers the confidence they need to commit to the transaction. You may want to consider redoing your landscape to include flowers, trees, benches, etc. before putting your property on the market.
Features are among the top reasons why buyers are willing to pay more for commercial property. From marketing materials to property tours, make sure you showcase all the great features your property has to offer. Some of the common features buyers look out for are fiber-optic feeds, spacious private offices, high warehouse ceilings, extra land, state-of-the-art electrical service, truck high loading door facilities, fenced outside storage, staging areas, etc.
Buyers are more willing to pay more for move-in ready properties than properties that require repairs. If there are needed repairs at your commercial property, consider fixing them before putting the property on the market. Potential buyers will see these repairs as an opportunity to bargain for lower prices. You may want to add a fresh coat of paint on the walls and clean the floors and carpets to improve the appearance of your property.
Without a pricing strategy, your commercial property may be over- or underpriced. Get started by finding recently sold properties that are comparable to yours in location, size, age and condition. You should also evaluate similar properties that are currently on the market. Many commercial real estate companies offer property valuations to help you determine an appropriate listing price.
Potential investors will want to know the capitalization rate (cap rate) to know how much income the building can generate. By calculating the cap rate, you can get a better idea of how your property will look to buyers.
Before you can complete the sale, potential buyers will likely conduct due diligence on your property, so you’ll want so start compiling that information early. Look for floor plans, environmental reports, utility bills and records of recent repairs. It will be easier to negotiate a strong deal with accurate information.
Collecting information on the neighborhood of your property can also benefit your sale. Information such as distance to public transportation, traffic counts, and demographic data can help you showcase why buyers should choose your property.
To sell your commercial property for top dollar, one of the best decisions you can make is to partner with a seasoned commercial real estate broker. Brokers can help you navigate the complexities of commercial real estate, as they understand exactly how the market works and how to showcase your property features.
Choose a broker who you can trust and who has a proven process for selling commercial properties. Don’t hesitate to ask for references of similar types of properties the broker has sold before. You should also choose a broker with the following qualities:
Once you choose a broker, you’ll want to ensure they attend each property viewing to answer questions and highlight the property’s features.
By following these tips, you’ll be sure to earn top dollar for your building. If you’re considering selling your property, reach out to one of Menlo Group’s trusted advisors to get find out what your property is currently worth.