What to Do With Hard to Sell Investment Property
There will come a time when you decide to sell some of your commercial investment properties. It could be to finance a new investment, to focus on a specific niche within the sector, or your want a holiday!
What ever the reason, some properties are just hard to sell. So how do you sell an unwanted property?
Lets take it step by step:
What's the first thing that prospective buyers will see? The property's photo. The outside appearance is always a good indication of what kind of maintenance the property has undergone. Make it look good outside and you've at least earned a visit from an interested buyer. Sprucing up the outside of your commercial property needed cost a fortune. Clear away any rubbish, weeds, cut the grass, a lick of paint, fix the gutters. Yes, it's an investment in something you are selling, but if it cuts the time it's on the market in half, what's that worth to you?
All the property markets have gone done in recent years. It's a buyers market. The more that you can do to make your property stand out, the faster it will sell. Don't go crazy, just imagine what you would be looking for if you wanted a property you could move straight into.
Before you invest time with prospective buyers, make sure that they are serious and have the means to go through with any deal. They may talk the talk, but can they walk the walk? You don't want to spend weeks working with a buyer to find that they were full of hot air. Find out at the start whether they can back up their interest. This could be done straight out, or with a bit of investigation with your property agents.
Don't overprice. As you know, it;s a buyers market. Unless there is overwhelming demand in your sector and the geographical area, best to get that sale rather than hold out for the best price. You are now in the property selling business, and the first thing you need is to get people "through your door" to view the merchandise. Over-inflated prices, and they will walk past to the next shop. If you are not in a hurry to sell, okay, you can afford to wait awhile - but work out how long you can afford to wait.
Always give the best possible reasons as to why you are selling. It sounds obvious, but appear confident and relaxed. You want your buyer to believe that you hate parting with the property but you need the sale for a larger investment. If you can sell with a tenant, all the better, and then you can add some kind of premium - especially if it is a long term and safe tenant.
Chances are, that you may know other commercial property investors around your area. If you are in a hurry and need a quick sale, there may be the people to approach first. Otherwise it's down to the local commercial property agents and local advertising. Remember the internet! There are many specialist commercial property web sites where you can advertise your property, but just be aware of the over-inflated charges some of them ask.
Another way to go is an auction. As well as the traditional auction, there are some online auctions sites springing up. You can always set a reserve so your bases are covered, but remember to factor in all the various fees to the auction house etc.
Lastly, don't be greedy. If you need cash fast and you are prepared to sell some of your properties, weigh up the cost of them standing empty and all the inherent costs of that, against a faster sale at a lower price. As always, follow the numbers and keep emotion out of it.
No matter what the state of the market, there is always money to be made in commercial property. Keep to a working strategy, stay level-headed and for most people it can still be a profitable market.
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