Because every commercial property is different, there are more nuances than you might expect to sell each one. Like residential homes, commercial real estate property also has features that can add or detract to the value of a unit or location. As a result, understanding when you need a commercial real estate appraisal can be immensely valuable information.
Below, we break down some of the main things you need to consider before selling your commercial property.
When Do You Need a Commercial Real Estate Appraisal? Answer: Right Away
More info about your property is always better. One of the most valuable insights you can collect before selling is the appraised value of your location.
This is distinctly different from the value your real estate agent might claim your property to be worth. They are simply making an educated guess based on their experience.
An accredited appraiser will be able to provide a market valuation that is not only accurate but also to a standard that will hold up in court in the event of any discrepancies. The appraiser will also use multiple valuation methods to improve the accuracy of the appraisal when providing a final value.
Make Sure to Get All Your Documents in Order and Organized
Property sales are significantly more complex and paperwork heavy than retail sales, so gathering all the documents you need beforehand can not only speed up the process but also help you stay organized throughout it. A few of the documents you’ll need (if applicable/available) are the current tax assessment notice, past or current lease documents, a Real Property Report (RPR), any drawing or floorplan of the building, past or future development plans, and the cost and/or budget for the building or addition.
Generally speaking, anything related to the ownership of your property you were given or acquired throughout the ownership are likely documents that you’ll need to present or refer to during the sale of your commercial location.
By gathering all of these documents, you’ll also be helping your appraiser too as some of this info will also be helpful to them as well to further speed up the process.
Don’t Neglect Your Marketing
Finally, it’s important to get the word out about selling your property. Simply adding it as a listing to any real estate listing board isn’t going to get the attention to sell it quickly. Virtual tours are a worthwhile investment to get done as are getting professional photos that show off your property from the best possible angles.
Overall, it’s worth it to get an accredited appraiser before selling, make sure to get any and all documents relevant to the sale ready, and back up all your hard work on your property with marketing that shows the best side of your location.