Commercial property selling is a complicated process. Yes, it’s complex and yes, it takes patience. But, it’s definitely not an impossible feat. With the right mindset and the help of a local, experienced professional, you can sell your apartment building. And, do so for a fair price, to boot. You just have to be in-the-know and take it step-by-step. You’ll get better results if you proceed with a clear path (and an open mind).
How to Find Apartment Building Buyers
First, let’s talk a bit about how you’ll find buyers. Just who and where are they? It’s a necessary question to answer. And, there are actually a few different areas where you can begin to look. Of course, it starts with teaming up with a commercial real estate professional. These individuals have connections and contacts. You can also explore your own professional network. Perhaps you have a friend or someone who knows someone else.
It is crucial to memorialize every detail possible in the commercial real estate contract. Since courts usually only consider the four corners of a contract in order to settle disputes, all critical details of the deal should be covered in the contract. Too many individuals involved in commercial real estate use standard contracts that do not cover the unique contingencies that only exist in these types of transactions. —Harras Bloom & Archer LLP
You can also reach out to known apartment building buyers and/or commercial property holders. Additionally, you can engage in a whisper campaign to reach out to others. Basically, you should exercise all your options to gain the most exposure possible. Simply put, the more attention, the better.
Common Commercial Property Selling Pitfalls
Now, let’s look into the biggest mistakes you should avoid as a commercial property seller. Not surprisingly, these are mostly remarkably similar to residential real estate, with some exceptions. Here are the top commercial property selling pitfalls you should know about:
- Improper pricing. Pricing is critical to gaining attention and attracting the right buyers. Unfortunately, too many apartment building sellers attempt a high-price strategy. They believe doing so will give them more room to negotiate and to wind up with a little extra. But, this typically backfires collasally. Price it right and reap the rewards.
- Bad timing. Don’t try to force the timing. It cannot be manipulated. Think about it this way, if the market is down, it’s time to buy. When the market is up, it’s time to hold or sell. (It’s not rocket science and just common sense.) The point is, wait until the right time.
- Limited marketing. If you really want to sell a commercial property, you can’t rely on the MLS to get eyes-on. So, you have to market it to a wide but particular audience. Don’t restrict your marketing to the local area — reach out regionally and nationally.
- Inadequate contracts. Perhaps the largest mistake commercial property sellers (or buyers, for that matter) is to rely on a general sales contract. With commercial transaction, every single detail is vital.
If you’d like to learn more about commercial real estate investment benefits and more about the selling process, please contact me.