Things To Do Before Selling Your Commercial Property

by Administrator 18. September 2018 08:34

Commercial property consists of office buildings, shopping centers, industrial complexes, multi-family apartments with at least 5 units, hotels/motels, RV and mobile home parks, land, storage, malls, retail space and farms/ranches. Buyers of commercial property look at it as a form of investment that will generate income flow.
If you are a seller planning to sell your commercial property any time soon, following are some important things to do before doing so:

  • Set Goals: By setting a clear goal for selling the property, you are in a better position to determine a transaction that will meet your needs. Some points to consider are, what you want to accomplish from sale, whether you want lump sum money on closing or monthly income, the amount of cash you really need and so on.
  • Get In Touch With Qualified Buyers: Look into the database of qualified buyers and contact them. Focus on marketing your building on a larger scale.
  • Interview Buyers: Interview potential buyers to assess their background, resources, their interest in the building and how they plan to manage it.
  • Educate Buyers: Educate your buyers that there is more to a building than its location. Bring to their notice the importance of terms and expandability. This is so because more aware your buyers are, higher are your chances of selling the property successfully.
  • Determine The Value Of Building: Buyers look at a building with a higher value as a potential source of high income. Determine the value of your building by dividing the net operating income by capitalization rate of the area.
  • Create A Professional Marketing Packet: This helps highlight the best features of your property and influence the buyers positively.
  • Meet The Buyer In-Person: If a potential buyer likes your marketing packet, arrange for a meeting with the buyer and involve a real estate agent too. Work towards finalizing the deal with the right choice of words.
  • Get A Confidentiality Agreement Signed: If you want protection from litigation, get a confidentiality agreement signed by the buyer.
  • Negotiate With Bankers: Presenting the professional marketing package to bankers improves the chances of getting the deal financed.
  • Waiver Off Contingencies: Getting a buyer to sign a waiver of contingencies after the completion of due diligence period ensures that he does not walk away from the deal without forfeiting the earnest money.
  • An Escrow Agent: Availing the services of an escrow agent ensures that the closing is smooth, organized and pleasant.

John Reider Properties offers several services. For more information, visit 455 E. Central Texas Expwy,Suite 101, Harker Heights, TX 76548 or call at (254) 699 – 8300.

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