3 Things to Consider as You Get Ready to List a Commercial Property
With property values rising across the country, home and commercial property owners are more open to the idea of selling. If you’re ready to unload your commercial property, a few tips can help you keep a level head throughout the process. Get the most money for your property with small do-it-yourself upgrades. You can raise your property value by thousands with a few hundred dollars. No matter where you are in the process, explore how a capital gains tax might affect your sale. Federal and state taxes may increase depending on a property’s appreciation. Factor this cost into your sale. When you find a potential buyer, conduct due diligence on his or her financial history. You’ll save yourself time and hassle from the get-go if you vet all prospects.
This property can be seen here.
Put Your Best Foot Forward
Property sales are big money, so even percentage-point sale differences can have an impact on your business’ bottom line. When a property is beat up or out
of date, it opens the door for buyers to haggle down the price.
Outshine the competition by upgrading your commercial property before the sale by having a pest control professional check for termites or any other pest you may not be aware of. If your ceilings are covered in outdated popcorn material, remove it by spraying the surface with a water and scrapping the material off with a putty knife. The average professional internal paint job will cost between $3,600 and $6,000,but you make much of that back in value. Paint the walls yourself, on the other hand, and you can earn the value boost without investing thousands of dollars.
If there is a structural or cosmetic problem in your commercial property, take care of it before you put it on the market. Buyers will lower their offers and ask you to fix any problems anyway. In the long run, you’ll save money.
Investigate the Capital Gains Tax
<p>Your commercial property may be the boon to boost your business into the new year, but you won’t sell it without some red tape. Federal and state governments may levy a capital gains tax on the profit you make from your property. The rate varies based on your state, how long you’ve owned the property and your marginal income tax rate the year of the sale. Factor this cost into your budget as you plan to sell.</p>
Vet Your Buyer
Like any property sellers, commercial owners are wise to vet potential buyers as they move toward making an offer. Sales can fall through when illegitimate buyers either can’t get loans or present fraudulent information. To accelerate a smooth sale, screen potential buyers as you would potential tenants. Property management associations can provide tools to help your cause, like tenant screening services. You may be selling the property, but that doesn’t mean you you’re willing to sell to anyone. This screening service will enable you to pass your commercial property on to a worthy business owner and maintain value for surrounding businesses.
The featured property can be viewed here.