For a variety of reasons, owners and developers often find themselves in need of a quick and uncomplicated disposition for commercial property. This can be a tall order, but there are ways to make the process simpler and hasten its completion. Below we discuss some considerations that will be involved in getting the best price for a property while still meeting any existing time constraints.
If the property has existing debt, the seller should consider whether it can be assumed. If not, it may be possible to restructure the debt or to pay it off at a discount before the property is sold.
Best use of the property
When marketing this property, the seller should think about whether the current use being made of the property is its best (most profitable) possible use. If not, it might make sense to make some changes or even redevelop the property to raise its value before selling.
An important factor in how well a property sells is how many people are reached with the news that it’s available. Technology makes it easy to make contact with thousands of potential buyers –through listing sites as well as through professional networks and social media.
Real estate brokers now provide extensive property information online, and customers are coming to expect it. Listing a property for disposition should involve as much in depth information as possible, to assist buyers in determining whether it’s for them. Sites include market information and trends to provide a clear picture of where the listing fits. Platforms have recently developed that provide private listings for registered users, so even so-called “off-market” deals are now online.
Even if thousands of buyers have access to information on the property, its disposition is only helped if they are qualified. Verifying the ability of prospective buyers to complete the deal is critical, and can often consume a great deal of time which could lead to a dead end. Hiring a professional can help make this process more accurate, as they will use established industry connections to gather the necessary information on buyers quickly.
Working with a pool of buyers that has already been checked and verified can cut weeks off of the time required for disposition, and that’s possible on some investment platforms. In order to participate in deals on Brevitas, for example, buyers create a profile and provide proof of funds along with a government ID.
With that information covered at the outset, deals can move forward more quickly.
Commercial property disposition can be the solution to a range of difficulties, or just a step whose time has come. Either way, simplifying the process can save the seller considerable time, money, and aggravation. CRE is making use of technology to facilitate this type of activity, making the whole process more transparent and less time-consuming. Knowing about the tools that are out there can give buyers a tremendous advantage and smooth the road to a successful outcome.