Commercial real estate is not the same as residential real estate. Commercial appraisals, neighboring properties, and financing can all make a huge difference when it comes to selling commercial property. Whether you are selling a business or an empty property, you will likely face the same challenges. Luckily, you can make selling your commercial property a lot easier by following these four tips.
1. Know Your Zoning
Commercial property has specific zoning laws which dictate how the property can be used. It is important that you know this information, as it will determine what type of buyers you attract. If you do not know how the property is zoned, ask for that information before you list the property. Even if you think you know, it can be helpful to double-check the zoning, as it might have changed. For example, zoning for an apartment complex could change to allow a hotel to take its place.
2. Clean It Up
Just like with residential property, it is a good idea to take some time to clean up your commercial property before selling. A new coat of paint, updated flooring, and clean windows can all make a huge difference when it comes to your commercial property value. Don't forget to clean the exterior of the property as well. Removing broken bricks or painting over graffiti can all help to increase your property value and attract buyers. If you own land, consider hiring a landscaper to mow down the grass, cut hedges, and remove weeds. All of this might sound unnecessary, but it is often worth the additional time and money—so don't skip it.
3. Gather Documentation
Another important selling tip is to ensure you have all of your documents in order. Buyers will want to know the history of the building—and paperwork will provide it. In addition, having your documents ready shows buyers that you are serious about selling. Some common documents you should have ready include appraisal information, rent receipts, copies of the title and mortgage, and copies of utility bills. This will give buyers an idea of how much the property will cost on a month-to-month basis. You could also provide receipts for repairs or upgrades to show prospective buyers that the building has been taken care of well.
4. Hire Help
Finally, hire some outside help from a commercial real-estate company. Unless you are experienced about selling commercial real estate, you'll need the help of a broker. These professionals will know how to sell your property and fast. They can also help you get the most return on your investment. Brokers can also help you navigate the tricky laws of commercial real estate.
While selling commercial real estate can be tricky, it doesn't have to be. With these four tips, you'll be well on your way to getting a good return on your investment.