High sale prices, sustained demand, reduced supply… Do these three variables ring a bell? For over a year now, impressive opportunities in the commercial real estate market have been coming to life for those wishing to sell their properties. But beware! It’s a mistake to think that a sale requires little effort and that your property will sell for sure! Your ultimate goal is to sell at the best possible price and under the best possible conditions? Use a well-thought-out strategy to give yourself the best chance of success. Here are our top 4 tips for selling your commercial real estate quickly and at the best possible price!
Tip #1: Surround yourself with professionals
To attract the right buyers to your property, you need a good understanding of the market – the current competition, the target clientele and marketing trends. Working with a real estate broker who has all the market data is an asset to the process of selling your property, and that’s why 89% of real estate sales made with a real estate broker will close!
We have identified 3 main advantages of working with a real estate broker:
1. Its network of contacts
Real estate brokers are in constant contact with their colleagues and customers. The pool of people with whom he communicates on a daily basis is a gold mine for finding the ideal customers for your multi-dwelling, commercial or industrial property.
2. Marketing skills
The right broker will be able to produce the ideal marketing for your property, thanks in part to his or her knowledge of real estate marketing trends; quality videos and photos, social networks, newsletters, and so on. What’s more, real estate brokers are present on multiple listing networks, which greatly increases the visibility of your property for sale!
3. Strategic vision
The real estate broker’s sole aim is to sell your property at the best possible price and under the best possible conditions. He will therefore evaluate the best possible selling price, as well as the strategy to be used to give your property every chance of selling.
Tip #2: Increase market value
A fair price = a fast sale! To set your price at the right level, market value is THE best data to rely on. Forget the municipal value! Market value tells us what your property should sell for, based on the law of supply and demand. Fortunately, there are ways to increase the market value of your commercial real estate. Profitability in commercial real estate is very important, as it is directly linked to market value. In fact, making certain renovations or improvements to your properties will make them even more competitive and increase their value. Be sure to make improvements that will have a real impact on market value, and that you will recoup with the sale. For example, renovating certain apartments or commercial premises will increase rents, and therefore market value.
Tip #3: Do a pre-sale inspection
As a seller, we hope never to have to lower our price during negotiations. In fact, many buyers carry out a pre-purchase inspection to identify any weaknesses in the building. This enables them to negotiate the sale price downwards, depending on the extent of the work required. To avoid this kind of negotiation, it’s a good idea to have your pre-sale inspection on hand so you can make improvements to your building before you put it up for sale. What’s more, with a realistic picture of your building’s condition, you’ll be able to set a fairer price and sell faster. Since your inspection report demonstrates your good faith to the buyer, it may dissuade him from carrying out his own inspection. So you can avoid price reductions and heated negotiations!
Tip #4: Have the right documents on hand
To simplify the selling process, you need to have all the documents relating to your multi-unit building, commercial or industrial property on hand. Putting together a file containing all the information you need to sell your property will save you time and headaches. What you’ll need before selling
- An up-to-date certificate of location (less than 10 years old)
This certificate, drawn up by a land surveyor, serves as protection for both parties involved.
- A recent environmental analysis (phase 1)
This analysis identifies potential sources of contamination that have or could affect a site. It reduces uncertainties and is very useful in the sale of commercial and multi-unit buildings.
- All the financial information about your properties
Leases, current expenses, fixed costs, etc.
Even more tips!
For even more tips on selling your multi-dwelling, commercial or industrial building, contact us right away to discuss strategies and get more advice!
Don’t hesitate to entrust us with the sale of your property to obtain the best possible price. The Jean-Guy Ayotte team is there for you!