When selling commercial real estate, sellers must understand that the process is very different than when dealing with residential property. In commercial realty, the goal of investment is profit and the ability to generate income. For a successful sale to take place, property owners need to think in terms of buyers and presenting a property in the most favorable light. The best way owners selling commercial real estate can do that is to offer an attractive financial deal so buyers feel compelled to purchase commercial real estate.
Finding the Right Buyers
An important factor in selling commercial real estate is to find the right buyer. Not every investor will find a property to be a worthwhile investment, so success depends on finding the ones who do. Property owners should work with an experienced broker who understands the different audiences for commercial real estate and knows how to attract the buyers who will be most interested. Many times, that involves more than just advertising.
Brokers who can successfully market and sell commercial real estate must know their local commercial climate and also have an extensive network of contacts of potential buyers looking for the right building. Finding the right buyers also involves helping property owners understand how their properties can be marketed and a sale negotiated so that everyone wins in the end.
Orchestrating the Right Sales Strategy
Once an interested buyer has been attracted and qualified, actually closing the deal depends on using the right sales processes that will help that buyer achieve investment goals. This is why even the seller of any commercial realty deal must understand the buyer’s goals as well as their own. An educated buyer is more likely to close a favorable deal. Sellers should always discuss goals with their buyers and educate them about the many favorable qualities beyond the obvious that a property for sale may hold for them.
Sellers can provide a marketing packet for buyers to see the many ways in which a building is being represented to help them understand these qualities. With a recent property valuation, all of these things are valuable in allowing the seller and their agent to construct the best sales strategy.
Negotiating the Deal
After the qualified buyer has committed to the sale, sellers and buyers should sign a confidentiality agreement, then proceed to building inspections and other negotiations. Success at this stage depends on having paved the way with a good sales strategy, one that draws in the most motivated buyer and helps them understand how the building can meet their goals and expectations. Throughout the process of commercial real estate offers and counteroffers, sellers and buyers can hopefully meet in the middle so that both parties investment goals are met.
The importance that anyone selling commercial real estate must realize is that the motivation and goals relating to these transactions are much different than with any other type of real estate. Achieving the best deal comes from finding the right buyer who will appreciate a property’s many selling points and negotiate in the right ways as a result. This must all be well planned, beginning with having an experienced broker of commercial real estate who knows the seller’s goals and how to effectively market their property!