Before you list your property it’s important to consider asking price and who will market your property. You should also determine how and where to market your commercial property before making any decisions or signing any contracts. Here are some things to consider as you get your commercial property ready to sell.
Initially, many commercial property owners think selling their property by owner will save them the commission expense. Unfortunately, selling your commercial property by owner may not get you the highest possible purchase price because you are limiting the ways in which you can market your property. Many property owners selling by owner may place a “For Sale” sign on their property and list it on a few online listing services. But had they listed it with an agent, the owner could have taken advantage of the number of other paid listing services only agents have access to as well as organizations real estate agents have memberships, giving them contacts that increase the commercial property owners possibility of a sale. When your commercial property has more exposure, it will not only sell faster but has a better chance of selling for a higher price.
Jeff Cline explains “Arizona ROI at SVN | SFRhub Advisors is one of the few Phoenix commercial real estate brokers that actually invest to market and create value in your property. Most agents simply “list” the property on a few
websites and wait for another agent to bring a buyer to them.”
This ‘old – conventional’ method can take months. In today’s advanced technology world and the Phoenix marketplace, it’s important to ‘take’ your property to the buyer and their agent. The difference – ArizonaROI subscribes to the regions highest impact digital and conventional marketing platform. Few other commercial real estate firms, even the big ones, employ these advanced marketplace methods. Few really make a large financial investment in the marketing, due-diligence and transaction periods to create value and properly market YOUR property. ArizonaROI’s program can have a major positive impact on both value or sales price and in some cases, a reduced listing period.
Another benefit of hiring an agent is that they field phone calls from potential buyers who may or may not be qualified to buy your commercial property. Real Estate agents can screen pre-qualified buyers and market your property. Agents are also a great buffer during the due diligence period and the time leading up to closing. They ease the burden on the commercial property owner by communicating on their behalf with the purchaser, lender, title company and attorney.
When it comes to commission, Phoenix area agents are typically paid a percentage (between 6% and 10%) of the selling price. The type of property, its location and how sellable it is all play a role in determining commission percentage. For example, a strip mall that’s mostly empty in an economically depressed part of town would be considered hard to sell. So a higher commission on such a property provides the agent a better incentive. The higher the commission, the more favorably a real estate agent will present it to potential buyers.
When you get ready to hire a real estate broker to represent your commercial property, it’s essential that you hire a commercial real estate agent rather than a residential agent as commercial and residential properties are two totally different products requiring different approaches to marketing, financing and the transaction process. Good commercial real estate agents know the current market trends and use this to market your property to the most suitable clients. Commercial properties need multi-page marketing brochures that provide buyers with pricing, demographics, NOI calculations, CAP rates, rent rolls, traffic counts, income & expense statements, topography maps, site plans, property and aerial pictures, PIP lists and other items. With such precise information, potential buyers are more likely to make an offer. Knowing how to calculate an appropriate asking price for your commercial property based on its location, current economy and market trends is very important and requires a lot of experienced research by a good commercial real estate agent. Experienced commercial real estate agents protect the interests of the party they represent when closing commercial real estate transactions which are much more in-depth and challenging than residential transactions. Finally, experienced commercial real estate agents have established contacts in commercial lending that can lower debt and closing cost and most importantly help speed along the closing process.
TOP 10 Reasons to employ SVN | SFRhub Advisors…
Invest and develop an advanced property and market search (Buyer) or create an advanced marketing platform blending conventional and digital marketing, networking and promotion (Sellers). Provide the client with a custom APP to access all the property, or search, documents and information.
Be accountable and approach the assignment as a principle rather than just an agent trying to collect a commission check at closing.
Have a deep understanding of a clients requirements and goals.
Research multiple platforms and business relationships to find properties that meet the need of the client saving time and energy. Market across local and national platforms.
Protect client’s property by avoiding costly mistakes.
Fully understand the clients business and financials.
Reduce risk by finding the right property at the right price.
Be a specialist and have detailed knowledge of market rates, comps, and contacts.
Be willing to be proactive on clients behalf even after a lease is signed or building sold.
Be patient and follow up with each and every request of client.
Would you like to know the value of your commercial property?
Just submit the basic information below and the ArizonaROI team will not just send you some email ‘comp’s’ from a listing website like most agents. ArizonaROI will present to you a complete property valuation, sub-market and property segment analysis with advanced demographic reports assembled in a professional portfolio.
SVN | SFRhub Advisors (SFRhub.com) is the online marketplace for Single-Family-Rental (SFR) and Build-For-Rent (BFR) investment portfolio sellers and buyers. SFRhub enables sellers to easily manage property listings and for buyers to research, identify, underwrite and transact on investment portfolios that meet their criteria.
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