Sometimes even the most seasoned property owner has expressed trepidation over conquering the tasks involved in “preparing to sell my commercial property.” These feelings are natural since anyone who owns commercial real estate knows that this process can be tedious and take time.
You probably already know that preparation is the key to success when it comes to the rapid sale of your real estate asset. Sellers must be equipped for unexpected challenges, have all fact disclosures and information ready and accessible, and have an understanding that the property must be set for maximum exposure to all interested parties.
Necessary Paperwork
Accumulate all available reports, including:
- ALTA surveys
- as-built drawings
- Phase 1 and 2 environmental assessments
- property condition reports
- zoning reports
- insurance studies
- tenant lease files
- income/expense reports
- appraisal
- earning potential statements
- financial details
- surveys
- loan documents
Check Title
- obtain a preliminary title report
- pay or dispute any overdue taxes or liens
- search for any pending lawsuits (extremely time-consuming)
- research for covenants, conditions, restrictions, or other ongoing obligations
- investigate for a discrepancy in ownership
Taxes
- plan for and structure a 1031 tax-deferred exchange if the seller intends on selling the property as part of this type of transfer
- check if all members or indirect owners agree to this proposal
- possibly restructure ownership before sale
Property Preparation
- interior cleaning
- exterior cleaning
- landscaping
- parking area repair
- window cleaning
- roof report and/or repair, if necessary
- specific small improvements, if needed
- HVAC inspection and report
Real Estate Agent
Commercial property owners can choose to sell their property themselves, but here are a few reasons why a licensed professional can be of service to you in this area:
Real estate professionals have entree to appraisals of similar properties. They also are aware of comparable sales that have occurred in the same area as your commercial market. Professionals possess marketing tools and materials they have used and produced to sell listings quickly and easily. Additionally, buyers are most often represented by a real estate professional.
Real estate brokerages subscribe to multiple listing services that make your property known to all that have access to those systems. Best of all, real estate professionals can maximize exposure to buyers and are skilled in dealing with legal disclosures, contract negotiations, property ordinances, and escrow management.
Sometimes it makes sense to allow an expert to do what he or she does best. At Lee & Associates Orange, we have real solutions for property and business owners. Allow us to use our superior market knowledge to make your sale for you.
by Staff Writer, Lee & Associates Orange
