If you’ve ever tried to sell a home, you know that it’s not as simple as just putting it on the market. You have to clean it, fix anything that needs fixing, and makes sure there are no unpleasant surprises for potential buyers. Selling a commercial residential property is similar: there’s more than one thing that can go wrong if you don’t prep properly. But with some smart planning and the right help (yes, we’re looking at you), you can get your property ready for sale in no time!
Evaluate the Commercial Residential Property
As with residential real estate, how you prepare your commercial residential property for the market will have a significant impact on the final sale. When selling a residential property, you’ll get advice on what renovations may be needed, address any maintenance issues, and stylize the property to highlight the features you want to sell. Commercial properties are pretty much the same, the only difference is the factors you perceive differently. When evaluating a property, you should:
- Understand the property’s condition.
- Determine if it is worth the cost to repair.
- Know what repairs will be needed and if they are costly or not necessary.
- Determine whether or not the property can be rented out in its current state, or if it needs extensive work before being rented out again
Work with Commercial Residential Property Attorney
Working with an attorney is the best way to ensure that you’re protected and have all of your bases covered. They can help you with many aspects of the process, including:
- The contract. Your attorney will work with the seller’s lawyer to draft a contract that protects both parties interests and includes all necessary clauses for closing on time. If there are any problems with this stage, it would be better for them to be caught now instead of later on in escrow.
- The escrow process itself involves making sure all paperwork is correct before the closing day arrives! This step also requires coordination between attorneys representing both parties (you and your seller), so having one person who knows how everything works to make things much easier than having two separate people doing their own thing independently from each other.
Clean the Commercial Residential Property
Most commercial properties are tenant investments, and general maintenance may be the responsibility of the tenant. However, before going to the market, it is always a good idea to inspect the premises and ensure that they are properly presented and maintained. As with residential properties, any small steps you can take to make a good first impression can have a big impact and ultimately increase property value.
- Remove all personal items.
- Clean and polish all surfaces, including exterior windows, screens, and glass.
- Vacuum and clean all vents (such as those in the kitchen or bathroom).
- Clean all toilets, sinks, and tubs thoroughly with a bleach solution to ensure they are free of germs that could cause illness in your tenants’ homes.
Commercial Residential Property Repairs And Maintenance
- Clean and maintain the property.
- Repair any damage to the building, including broken windows and doors, cracked foundations or floors, leaking pipes, or roofing.
- Remove clutter from the home: old furniture, clothing, or other items that are no longer needed or wanted by you or your tenants should be removed from sight.
- Make sure that all repairs are done professionally so as not to detract from the value of your investment property when it comes time for a sale!
Prepare for the Sales Process of Commercial Residential Property
The first steps in preparing a commercial residential property for sale are to prepare a marketing plan, sales brochure, and presentation. You will also want to consider your pricing strategy and the type of contract you want to be used during the sales process. Your marketing plan should include:
- How long do you expect it will take before you find a buyer for your property (or properties).
- What kind of buyer would be interested in buying this particular property; i.e., what demographic do you think would be most likely interested in buying this property?
- What price range is appropriate for this type of property; i.e., what price range should I advertise my house at so that it attracts enough serious buyers who might actually purchase it?
Working With an Experienced Commercial Residential Property
Working with an experienced commercial real estate agent can help you understand all of the steps to prep a property for sale. An experienced agent will be able to give you advice and help you find a qualified buyer. They may even be able to help figure out the best price to sell your property at, too!
Preparing a commercial property for sale can be a very complicated process. There are many different things to consider and the process will vary depending on the type of property being sold. However, if you work with an experienced real estate agent who understands all aspects of commercial real estate sales, then this process should go smoothly for everyone involved!