Owning commercial real estate (CRE) is a responsibility that only ends until you’ve finally sold the property. Putting it up for sale requires careful handling, which still falls in your hands. You have to remain involved in the entire sale process from beginning to end.
You’re probably aware of the profit you can gain from selling commercial property. Now you finally decide to make a move and benefit from your investment. You can make money from it and sell it fast if you know what you’re doing.
It all starts with preparing your commercial property before listing it for sale. Knowledge is key to success in what can be a challenging endeavor. Here are the things you have to do when preparing to sell commercial real estate.
Property valuation is the process of estimating a property’s value. It’s necessary to know your commercial property’s assessed value to have a fair concept of how much you can sell it and ultimately come to a selling price. Besides your selling price, property valuation is also helpful for tax purposes regarding business tax, wealth tax, municipal taxes, and annual tax returns.
Here are the factors that can affect the estimation of your commercial real estate’s value:
● Buyer/seller’s market: The market heavily influences your final listing price and how much investors are willing to pay for your property. If the assessed value falls on the buyer’s market, the buyer has a say in the price. On the other hand, if it’s on a seller’s market, buyers may be willing to pay your asking price. It’s important to know because a property’s value changes quite quickly.
● Property size: Larger properties are usually valued higher than smaller ones because they’re more attractive and lucrative. However, some investors also look for properties that are easier to maintain, which are usually smaller ones.
● Rooms and amenities: The actual size of a property is also a relevant factor that affects commercial real estate valuation. The more space and amenities it has, the higher the assessed value it can have.
● Location: A property’s value varies depending on where it is located. If your timeshare property is located in a tourist-friendly location, it is wise to check your property’s price before selling it. However, if you believe you won’t be able to get a worthwhile price, make sure to seek advice from one of the best timeshare exit companies as the professionals may help you make a sound decision. Note that timeshare maintenance fees don’t pay so make an assessment of all the costs associated with timeshare before getting one.
There are different property valuation methods, and you can have it conducted by a third party to avoid bias. There’s also a difference between valuation and sales appraisal, which is usually interchangeable when selling a property.
Compare it with other properties
Selling any kind of real estate revolves around coming up with the right selling price. Before you place your property on any listings, you should compare it to other properties. By doing so, you’ll also have a better idea of its current market value.
Familiarizing yourself with the pricing trends around you will help in selling your commercial real estate quicker. Find other commercial properties that are up for sale near yours because there might be competition. You may be competing against other properties, so comparing will help see what you can do to attract buyers to yours.
Choose the right listing
As a seller, picking the listing where you’ll post your selling ad is critical to your success. You should place it where more buyers can see it. The challenge lies in choosing which listing platform to pick because there are numerous choices available.
One specific thing is you should look for it online. Online listings provide more chances to market your property in front of more eyes..
Many of the top CRE listing platforms will require you to be represented by a CRE broker. You should also target off-market buyers to increase the likelihood of selling your property.
Showcase your CRE in the best possible way
Part of why you should choose online listing platforms is to present your property in a good light. You have more space allotted for uploading photos or videos showcasing the good sides of your property. This gives buyers a more realistic view of what they’re buying.
Keep in mind that buyers are more attracted to a property when they can picture themselves in the property. Always remember that when you’re coming up with ways to display your property for listings. Make sure that the buyers can see themselves using your CRE through your listing.
Final words
If you’re going to sell your CRE, do it in the best way you can. Have it assessed to know its current fair market value so you can come up with the right proper selling price. Prepare it for buyers and investors to get the return on investment you invested in in the first place.
Author’s Bio: William Ross may not be a lawyer by profession, but he’s one of the sharpest writers out there when it comes to property tax and valuation. Armed with considerable knowledge and gifted with impeccable writing skills, he can surely deliver engaging property-related content.
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