Do you have a commercial real estate property you would like to sell? If so, you have a couple different options for selling your property. In this blog post, we discuss your options and explain which one is best for you.
Ways to Sell Your Commercial Real Estate Property
There are two main options for you to sell your commercial real estate property. First, you can do it independently. Second, you can hire a commercial broker to help you do most of the work that comes with selling the property. Below, we explain how to go about these two options and what the processes entail.
Selling Your Commercial Real Estate Property Independently
Many people choose to sell their commercial real estate properties independently to avoid paying the fee of a commercial broker. Although hiring a commercial real estate broker isn’t free, the amount of work you will save yourself may be worth it. Selling commercial real estate is a full-time job within itself. Here are the steps people take when they sell their properties independently:
1. Find a Certified Inspector
Before selling your property, you need to get it inspected. A certified inspector will point out any damage or issues with your property that you need to fix before you sell it. Once you have had an inspector look at your property, you will need to fix any issues with they found. If you do not fix these issues, it will drastically lower the worth of your property, and people will be less likely to purchase it.
2. Find a Qualified Appraiser
When selling your property independently, you may have no idea what to list it for. There are so many factors that go into deciding a fair price for a property. This is where a qualified appraiser is very important. An appraiser is an expert who will evaluate your property and tell you what its market value is. From there, you will have a good idea of how much the property is truly worth.
3. Advertise Your Property
Once you have a set price, it is time for you to advertise that your property is for sale. This is one of the most challenging parts of selling a commercial real estate property independently. You may have to pay for advertising on social media, billboards, or newspapers. Advertising is crucial for people to gain awareness of your property and that it is for sale, so this step should not be skipped.
4. Hire a Commercial Real Estate Attorney
Once you have found a buyer, you will need to hire a commercial real estate attorney to write a contract for you. This will ensure the sale is legal and binding. They will also make sure you are protected as the seller throughout the sale process. Hiring an attorney can be expensive, but this is also crucial for selling your property, as your sale must be legal.
Selling Your Property with a Broker
As you can see, selling a commercial real estate property independently still requires you to hire people and pay fees. No matter what option you choose, you will need to hire an inspector to look at your property. When you hire a broker, after the inspection, all you do is give your broker the information they request, and let them do the advertising for you. Your broker will set the price at a competitive rate, ensuring you get the most for your property as possible. They will then show prospects your property for you, list it on their website, and will spread the word about your property. Then, when someone is ready to purchase it, a broker will usually have a contract ready for you. After the sale, you pay the broker for doing their work, and you are done!
Another consideration is that the longer you own the property, the longer you’ll need to pay for property taxes. If your own marketing process isn’t getting leads and finding a qualified buyer, the you could end up spending a lot more money because of waiting, then you would by using a commercial broker. Of course, these are generalizations. But, when you talk to a broker, you can get a better idea of what to expect in terms of costs and savings.
Broker or Independent?
The truth is, deciding between selling your commercial real estate property independently or selling it with the help of a broker depends on the amount of time you have. If you are already a very busy person, it is highly recommended that you hire a broker. This will save you a lot of time, and your property will likely be sold much more quickly. However, if you are experienced and good at selling commercial real estate independently, that may be the best option for you.
If you’re interested in using a commercial real estate broker to sell your property, please feel free to contact us. We help people in the Salt Lake City area buy and sell commercial real estate properties and would be more than happy to help you sell yours. Our goal is to make the process of selling commercial real estate property as easy as possible for our clients. So, feel free to reach out if you would like some assistance.