Selling an investment in commercial real estate, even more than selling your own house, can benefit from a thoughtful game plan. Having a well-thought-out schedule of how to prepare and how to execute can minimize headaches and maximize return on investment.
Making profits, paying taxes
Consulting with a financial advisor or tax attorney is a commitment of time and money likely to save you time and money. Selling investment property often means cashing in on an investment and paying a big tax bill, but here can be many options for minimizing that bill. Effective strategies such as like-kind exchanges or selling certain losing investments can help take the bite out of your bill.
Prepare for a legal walk-through
A property in good legal shape typically sells faster and with fewer headaches than one with a lot of legal loose ends. If contracts attached to the property will have to be taken on by the buyer, and you’ll want to have those presentable and ready to show. Remember that you may need to get out of those contracts before selling, meaning added expenses. Also, look into cleaning up local government certifications, violations, inspections and renewals before selling or even listing.
Looking at plans you can cancel
When you know you’re going to sell, it’s time to look at any value-adding plans you had for your property. Capital expenditures like new appliances or HVAC and roof work might face the chopping block if going ahead with them is unlikely to yield returns.
Wise employee communication
Any employees or management company for your property are likely to appreciate transparency, which may be in your best interest. You could use their work and positive outlook to help sell the property, so consider advising the new buyer on keeping them on or consider recommending them to your network.
Preparing for a physical walk-through
As every house realtor knows, a physically attractive property helps maximize return. Think about inexpensive things you might do to make a good first impression. Look at little things like backroom clutter, spare parts and tools, floor stains and carpet tears, wall and ceiling holes and smudges. Also, do the math on slightly bigger things like lighting and some curbside landscaping.
A recent article by a member of the Forbes Real Estate Council provides details.