3 Common Challenges Involved in Selling Commercial Real Estate
Selling commercial property is a long, arduous process that can be challenging in more ways than one. The volatile market conditions often demand sellers to find creative ways to stand out from the saturated landscape, especially when it comes to handling commercial real estate.
Marketing residential properties and attracting homebuyers is tough enough as it is, but building your momentum in commercial property sales comes with even more hurdles in every stage of the process. If you’re planning to sell commercial property in your area, let’s explore the challenges in store for you on the horizon, so you can boost your sales strategy and land a sweet deal!
What are the Common Challenges in Selling Commercial Properties?
1. Striking the Market When It’s Hot
Gathering potential investors ans buyers for something as massive as a commercial property requires the right timing when launching your promotional campaigns, especially since marketing blindly will only minimize the impact of your marketing efforts. With that in mind, it’s important to analyze your local area and identify your target audience, so you can set an accurate timeline wherein they’re the most active and responsive to real estate campaigns. The absolute best way to do this is by working with an active commercial real estate agent who has access to tools like CoStar which can really help in providing accurate market research.
2. Looking for Areas in Your Property that Need Improvements
Another challenge of selling commercial property is the number of possible issues it can hide underneath it all. So before putting your commercial real estate up for grabs, it’s crucial to inspect your property and set a dedicated timeline to leave room to repair all the issues so it won’t compromise your sales down the line. Alternatively, if you do not have the budget to fix these issues, it is important to make note of them so that they can be disclosed to a prospective buyer and listed as a deferred maintenance item.
3. Gathering Critical Information Involving the Municipal, State, and National Information
There is a lot of paperwork involved when selling commercial real estate, and this includes preparing for the following:
- Legal ownership documentation;
- Mortgages, liens, mechanic’s liens, and other financial costings involved;
- Previous legal activity involving the past owner, from damages due to fire, flood, wind, and other natural disasters;
- Taxation records;
- Building permits, condemnation orders, inspection reports, and other related documents;
- Leases, vacancy rates, previous tenant issues, including legal actions taken by the past owner to resolve rental problems;
- Utilities including gas, electric, and water
- HOA Resale Documents;
- Structural details, the past purpose of the building, age, along with the official measurements of the entire structure;
- State permits, regulations, and official documents involving the community and;
- Valuation information as provided by any recent appraisals
The Bottom Line: The Importance of Exploring the Challenges Ahead When Selling Commercial Real Estate
Selling commercial real estate properties requires the tenacity to push through problems, and as an aspiring seller, you know that the journey ahead will be bumpy in more ways than one. By exploring the possible risks and challenges you’ll likely face in the commercial real estate market, you can fine-tune your strategy and find better ways to resolve your issues to skyrocket your sales moving forward!
Are You Looking for a Commercial Real Estate Agent in Maryland or Washington D.C.?
Handling real estate property can be a daunting task. Whether you’re a seller, buyer, or need help with leasing commercial space, it is important to work with a professional that can work towards your goals while protecting your interests.
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