The first step in a successful disposition or sale of your investment property is to have a meeting with a professional commercial real estate broker such as Westwood Net Lease Advisors, that has access to nationwide investors.
The first questions should be what is your goal, are you trying to do a 1031 trade or do you have a group of investors that have a part ownership in the present property and do not want to proceed with the trade, just an outright sale and go their own way?
The next step: are you, the investor, realistic in your asking price and how did you get to such a price using the proper net income and cap-rate to justify the price?
Many investors leave out expenses in their pro forma to show a higher net income thus leading to a lower cap rate sale.
As an example, the investment property may be 100 % filled with tenants, but a vacancy factor still needs to be inserted to satisfy future investors and loan officers to allow the sale happen.
Comparable sales data, price per square foot, both leasing and building costs can be shown in every area to justify the future price. In addition, the present marketplace will most likely show your competitors with the same product in different cities and states on the market, thus you need to consider your price in comparison to theirs.
How Can Consulting With A Professional Commercial Real Estate Broker Help You?
When considering consulting with a professional commercial real estate broker, take in account their past experience, their length of time in the CRE marketplace and question the broker thoroughly to make sure he or she has a grasp of your investment property.
Don’t accept vague or random statements but only factual and statistical ones explaining the good and bad aspects of the potential sale. What can go wrong and how long it would take to get to your end goal?
Be prepared, as a seller, to have all the pertinent materials such as old title reports, surveys environmental, lease and any notice given by the Municipalities that your investment property may be in so that the broker is prepared to meet all the questions of a buyer.
Ask the commercial real estate broker how he or she plans to market your investment property and attract buyers of the best kind to make offers.
Ask why they consider themselves better than their competitors.
Once, you the investor decide upon the right professional commercial real estate broker, a listing agreement follows along with a fair fee commission agreement that will only be paid upon the sale of the investment property.
Prepare your questions ahead of time and make sure they’re all properly covered in your initial meeting with the commercial real estate broker.