IS IT TIME TO SELL MY COMMERCIAL BUILDING?
Here are 7 KEY Questions:
- How can I get the best price? You must fully understand where your building fits into the submarket and what like-product has sold for recently.
- Should I hire a broker to sell my property? It’s not required, but certainly recommended. Unless you have the time and resources to conduct the market research, you should hire a broker who specializes in commercial real estate investments.
- What questions should I ask them before hiring them? You might start with how much experience do they have at buying or selling your building type? Can they demonstrate a track record of success in the sub-market? Consider the process like a job interview – can you tell who will put your interests first
- Will it cost me money to sell? Most likely. As the Seller, you will be responsible to provide several key pieces of documentation for a Buyer to inspect; in some cases up to 8% of the total sales price. Many of these costs can be shared by your Buyer.
- Will I have tax implications? Yes. You will be taxed on any profit from a sale; however, in many cases your tax liability can be deferred. In the end the IRS will eventually get theirs.
- Do I need to make improvements before selling? Not necessarily; the age and condition of the property will dictate necessary improvements, i.e., if the building systems are not up to code, you might want to update the facility before putting onto the market.
- What do I do with the proceeds? A variety of opinions exist on this topic. A good real estate broker and/or financial planner can show you several ways to distribute all your profits
For more information contact:
Brad Balbo | Sr. Vice President
602.778.3831 | firstname.lastname@example.org