Listing a commercial property for sale is drastically different than listing a residential property. Not only is the property most likely in a different bracket in terms of value, but it needs to appeal to an entirely different demographic.
Individuals and/or corporations purchasing commercial real estate have different needs, standards, and demands when it comes to commercial property. The very same features that may be considered a detriment when listing a residential property could be an important selling point for a commercial listing.
The process can also be a bit intimidating, especially when dealing with overly-aggressive investors or brokers looking to score a deal. Here are a few simple tips to help ensure the transaction goes smoothly.
The Commercial Sale
You’ve no doubt read about the intensity of the residential real estate market and, depending on the property type, the demand may be just as intense on the commercial side as well. The lack of supply of certain property types like industrial/logistics sites also gives sellers a huge advantage. Use the next section as a helpful guide when listing a commercial property for sale.
1. Use a Little Elbow Grease & Prep for Listing
It doesn’t matter what the property looks like in the photo that’s on the listing, the first time potential buyers physically view the property is what they’re going to remember. While most investors are far more concerned with function than form, making small changes and upgrades to improve that first impression can make a world of difference. Upgrade the light fixtures, repair windows and doors, and even throw on a fresh coat of paint if the property needs it.
Depending on the property type, it is also a good time to ensure any environmental testing that needs to be completed is done ahead of time. This can derail a sale, so it’s good to know everything up front.
2. Market Comparisons
Search the market and compare the property to similar properties. Determine what they are selling for and why. Pay close attention to locations and property features that make properties desirable. Getting the asking price right can make all the difference between an easy process and grueling one.
One thing that might be considered is to get an appraisal for the property in question. Having a realistic idea of the value will go a long way, both in terms of pricing the property and responding to any offers that come in.
3. Remain Patient
Yes, it is a seller’s market for many property types, however, it’s still important to be realistic. If the property is priced properly, the buyers will come. Do not get nervous if you don’t have many showings in the first week or two or even the first month. It can take some time for the right buyers to come along, so be patient and do not make any rash decisions on pricing or take a low ball offer because it may be the only one on the table.
Lastly, working with a seasoned professional commercial broker will help you through all the steps above and more. It can make the difference of selling your commercial property from being a nightmare to a dream! Contact us to help you.