There are many things to think about when selling commercial real estate. You must consider your target market, what kind of property you’re selling commercial real estate to, and what you’re asking for.
To make the most money in the shortest amount of time, you’ll need to keep up with the latest commercial real estate industry trends. If you plan on selling commercial property soon, here are a few tips and tricks to help you with the process of how to sell commercial real estate!
How to sell your commercial real estate off-market
One of the best and fastest ways to get the most money for your property is to sell it to off-market buyers or cash property buyers. These buyers aren’t actively looking for a property but may be interested in yours if they come across it.
Who are cash property buyers?
Commercial real estate investors buy and sell commercial property with cash. Commercial property cash buyers can therefore provide immediate financial support in exchange.
A commercial real estate investor provides answers to various potential property issues that can cause a lot of trouble for the seller. Commercial investors acquire distressed property from owners whose buildings cannot be repaired to attract commercial property buyers.
Point Acquisitions is a cash buyer and buys off-market commercial real estate anywhere in the USA.
We are a dedicated iBuyer and have the resources to close off-market commercial property fast. If you have a property you would like to sell, get in touch with us!
Pros of Selling Commercial Property Off-Market
When you selling commercial real estate off-market, you’ll be able to:
- Sell your property fast
- Have more control over the sale process
- Avoid working with tire-kickers and lowballers
Cons of Selling Commercial Property Off-Market
The main downside of selling commercial real property off-market is that you’ll have to put in more work to find prospective buyers.
You’ll need to be proactive and reach out to potential investors or commercial real estate firms who may be interested in your property. While this may take some extra time and effort, it can be well worth it.
How do I sell commercial property off-market without a realtor?
If you’re selling commercial real estate off-market, you don’t need to hire a realtor. Working with a realtor can be more trouble than it’s worth.
Realtors will typically want to list your property on different marketplaces, which can take weeks or even months.
You can sell your off-market commercial properties by contacting us today.
Work with a Commercial Real Estate Broker
Working with a commercial real estate broker is always an option and can be a great way to get your property in front of more buyers. However, it’s essential to work with a broker who understands the commercial real estate market.
Some things to keep in mind when working with a broker:
- Make sure they are familiar with the current market conditions
- Ask them what kind of marketing plan they have for your property
- Find out what their commission rate is
- Ask them for references from past clients
- Make sure they are licensed and insured
Working with a commercial broker can seem like it will make commercial real estate transactions more accessible, but that is not always the case.
A commercial real estate broker or agent may be looking for a quick payoff and push you to take a low offer from potential buyers rather than wait to take the best offer for your commercial real estate properties.
Pros of working with commercial real estate agents and brokers
Working with a commercial real estate agent or broker can have a lot of benefits, including:
- They might have an existing network of qualified buyers who may be interested in your property
- They will have a good understanding of the current market conditions and what a potential buyer is looking for.
- They will have access to different marketplaces where your property can be listed for potential buyers or other commercial real estate agents to find.
- They handle most or all of the commercial real estate sales process.
- They usually stay on top of the commercial real estate industry and news.
Cons of working with commercial real estate agents and brokers
There are some downsides to working with a commercial real estate agent or broker as well, including:
- They may push you to take a low offer from a potential buyer to get their commission
- You will likely have to pay a high commission if you do sell your property through them
- You will have less control over the sale process when working with a broker or agent.
When Should I Consider Working With a Commercial Real Estate Agent/Broker?
There are a few times when you might want to consider working with a commercial real estate agent or broker:
- You have multiple properties to sell
- You don’t have the time or resources to sell your property yourself
- You don’t know how to get in touch with potential buyers yourself
- You need someone to help you navigate the current commercial real estate market conditions
- You’re not sure what your property is worth in the current market.
Steps to take when selling commercial real estate property
Step 1: Hire an Inspector
The first thing you’ll need to do is hire an inspector to check the condition of your property. Most engineering firms can provide a Property Conditions Assessment or PCA to give you an idea of your building condition. This will help you identify any potential problems that could dissuade a buyer from making an offer on your property.
Step 2: Get a Commercial Appraisal
The next step is to get a commercial real estate appraisal. This will give you an idea of what your property is worth in the current market.
Step 3: Set a price
You’ll need to set a price for your commercial property that is competitive in the current market.
After you have completed the step to getting an appraisal for your property, you should have a better idea of your commercial property’s value. You can now set a price reflective of the current market conditions.
Step 4: Market your Property
The next step is to market your property. You can do this yourself by creating an ad for your property and posting it on various websites. You can work with a commercial real estate broker who will access a more extensive network of potential buyers or contact us as cash buyers to sell your commercial property quickly and for cash!
Step 4: Negotiate With Potential Buyers
Once you have found a potential buyer, you’ll need to negotiate with them to come to an agreement on the sale of your commercial property.
You’ll need to consider the current market conditions, the condition of your property, and any repairs that may need to be made.
We recommend engaging a real estate attorney who is experienced in commercial real estate property and transactions to help you negotiate the terms and conditions of the sales contract.
Step 5: Close on the Property
After you have negotiated an agreement with the potential buyer, you’ll need to close on the property. This will involve running a title search, allowing the buyer to conduct their due diligence, then head to closing and transfer the property’s title.
You’ll also need to pay any commissions due to the broker or agent involved in the sale.
Tips for selling commercial real estate
Selling commercial real estate may seem like a long and drawn-out process, here are a few tips to help you in the process:
Set realistic expectations for the sale of your commercial property
When selling commercial real estate, it is crucial to consider the current market conditions and price your property accordingly.
You should also be aware of the time it takes to sell commercial real estate and be prepared for a long process.
Market your property to the right audience
When trying to sell commercial real estate, it is important to market your property to the right audience. You can do this by working with a broker specializing in marketing commercial properties or advertising your property on websites that cater to commercial real estate investors.
Be prepared to negotiate.
When selling commercial real estate, you should be prepared to negotiate with potential buyers. You’ll need to consider the current market conditions and the condition of your property when negotiating a price for your property.
Get a Commercial Real Estate Attorney
An expert commercial property lawyer can help you in the selling process by reviewing contracts, negotiating with buyers, and closing on the property.
They can also help you with any legal issues that may arise during the selling process.
Review all service agreements and contracts
When selling commercial real estate, you’ll be working with many different service providers, such as brokers, inspectors, and appraisers.
It is essential to review all service agreements and contracts before signing them to understand the terms and conditions.
Determine all the property owners and the ownership types
When selling commercial real estate, you’ll need to determine all the property owners and the ownership types.
This will help you negotiate an agreement with a potential buyer.
Be prepared to make repairs or renovations.
If your commercial property needs repairs or renovations, be prepared to make them before selling. This can be a costly expense, but this can also be avoided by contacting commercial real estate cash buyers.
Check if you qualify for a 1031 tax-deferred exchange
To qualify for this, you’ll need to follow specific rules and have the proceeds from the sale of your property reinvested in a new commercial property within 180 days.
See our blog post on 1031 exchanges.
Should You Sell Your Commercial Real Estate Property Off-Market or On-Market?
There is no definite answer when it comes to deciding whether or not to sell your commercial real estate property off-market or on-market.
On the one hand, selling commercial real estate off-market is a great way to avoid paying a commission to a realtor. With the right buyer, the process of selling commercial real estate can be quick, and you may have more control over the sale process.
However, selling your commercial property on-market can give you access to a larger pool of potential buyers.
It’s ultimately up to you to decide whether or not working with a realtor is worth it or if selling your property off-market makes more sense for your situation.
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