Selling commercial real estate differs greatly from selling a residential property. Many of us have experienced the emotional highs and lows associated with the purchase or sale of a home. However, selling a commercial property exchanges the emotional factor for the analytical factor.
A commercial building is considered income property and as such, involves revenue, expenses and net operating income. When you decide to sell, it’s best to contact a professional, commercial Realtor that specializes in your particular type of property. You should ask about references, experience and credentials when choosing representation.
Once you’ve selected the right professional, an analysis of your property will be completed. A correct value and capitalization rate must be determined along with a marketing strategy to make your property ready to offer to investor candidates.
Signage will be put in place and inquiries will begin. Your commercial Realtor will field the inquiries and financially qualify the acquisition candidates prior to introducing them to you. Information about the property will be provided to all qualified candidates and a showing of the property will follow.
When a candidate decides to make an offer, your commercial Realtor will assist with this process and a Letter of Intent or Contract will be completed. Once the offer has been mutually accepted, the due-diligence period will begin, which allows the purchaser to check the property and verify all seller representations.
Once the purchaser completes the lending process and the closing takes place, your property will be sold! While it seems simple enough, there are many challenges along the way. By working together with your commercial Realtor, you can meet these challenges head-on and close the sale of your property.