A commercial property can be land, an apartment or office building, residential or retail rental space, an industrial complex or shopping center. Commercial property owners may decide to sell for various reasons, and it can take some time to sell the property. No matter what type of commercial real estate you are selling, there are several factors to keep in mind before putting the property on the market. Your goal is to set the right price and target the right buyer's market.
Consider how much you still owe on the property as well as what financing terms you will accept before you set a sales price. Know what the property is worth, but be realistic in the price you set. A sincere buyer is going to be knowledgeable about the current market.
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Request a professional appraisal (see Resources below). How much a commercial building is worth depends on how much income it can generate. Estimated value is based on both the building's income and expenses. Lenders will consider the property's worth before deciding whether or not to extend a loan to a potential buyer.
Market the property focusing on location and future income-earning potential as the major selling points. Advertise the property in different media. Post a Commercial Property for Sale sign where it can attract attention, especially if the property is located along a well-traveled area. Design marketing materials to give buyers a general overview of the property.
List the property with a commercial real estate broker who can bring you qualified buyers (see Resources below). A broker is responsible for interviewing potential buyers to make sure that they have the financial resources to purchase your property. Having someone else do the initial screening can save you time. A broker also has the experience to negotiate a better price in your favor.
Negotiate the terms of a sales agreement. You have the choice of countering a buyer's first offer. Once you settle on a price, the agreement should also specify the amount of the earnest money deposit, closing date and terms of financing.
Inspect the building before putting it on the market. That way you have an opportunity to repair or correct any problems that could prevent a sale. Hire a professional inspector or general contractor who can identify hazards or damage to the building's foundation, structure, roof, and plumbing, electrical and heating and air conditioning systems. In certain situations, you might also decide to hire specialized inspectors to assess for any lead, asbestos, mold, or other environmental health hazards, which might be present in the building.