To effectively sell commercial real estate you need to be aware that timing, a competent real estate agent and a good attorney are all a part of the mix. Commercial properties are purchased by partners and then are leased to a third party. Commercial real estate generally carries a high price tag and selling commercial real estate can be a challenging venture.
- You will need to list your commercial property when the market is ripe. Commercial real estate is volatile and prices fluctuate. Watch for financial swells to realize a larger profit.
- Research the reputation of real estate agents and find the best agent for your situation. Talk to previous clients and ask questions. Watch for agents who sell properties for less to get quicker commissions.
- Advertise your commercial venture in magazines and forums where there are actual buyers. Include good pictures and relevant statistics about the property. List the price per square foot, zoning rules and the lease history of your commercial enterprise. If you have a good leasing history, you will be more appealing to a potential buyer.
- Clean up your commercial building and make it look good before placing it on a selling market. Cleaning up the lot, mowing lawns and weeding any flower beds are a great selling tactic. Clean the windows and remove all graffiti. In other words, make your commercial building as attractive as possible.
- Make sure your building is correctly classified. Understand the rules for building classification for your area. A wrong classification can stifle a sell and make your property less attractive.
- Hire a competent real estate attorney to handle the tax and contract issues. This will save you a great deal of money and avoid unnecessary complications.
Do research and make sure you are listing the commercial property correctly, use a real estate attorney, clean up the building, and make sure you have all the rental records and repair receipts in order. Be willing and able to give all the information about income and outgo.
It is also a permissible and great idea to research your potential buyers. Make sure they are credit worthy and their incomes are high enough to purchase your commercial enterprise. Many a commercial real estate deal has gone sour because the buyer misrepresented himself. You can come out on top by following simple rules and doing your due diligence.
For help with your commercial property investment selling, also reach out to national, provincial and local Realtor Boards for help. For instance the Canadian Real Estate Association (CREA) has plenty of helpful guides, reports and articles, many of which are online at their website. And each province and real estate board has their own website with resources, too.