When it comes time to list your commercial property for sale, sellers often wonder where they should start. Today’s blog gives you three tips for beginning the process and getting ready your commercial property ready to list.
1 – Gather your documents.
The best time to begin gathering your documents before an offer is submitted is when you are getting the property ready to list. During the Buyer’s due diligence period, they may request the following documents:
- Contracts relating to the operation, maintenance, and management of the Property
- Property tax bills for the last five years
- As-built construction plans for the Property and tenant improvements, including architectural, electrical, mechanical, and structural systems; engineering reports; and permanent Certificates of Occupancy.
- List of all inclusions to the Buyer
- Operating statements for the past five years
- A rent roll is accurate and correct for the current year.
- A schedule of any tenant improvement work Seller is obligated to complete but has not yet completed, and capital improvement work is either scheduled or in process.
- All insurance policies pertaining to the Property and copies of any claims made for the past several years.
- Soils reports, surveys, engineering reports, or data pertaining to the Property
- Any and all existing documentation or reports regarding Phase I and II environmental reports, letters, test results, advisories, and similar documents regarding the existence or nonexistence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks and/or radon gas.
- Any American with Disabilities Act reports, studies, or surveys concerning compliance of the Property with the Act.
- All permits, licenses, and other building or use authorizations issued by any governmental authority with jurisdiction over the Property and written notice of any violation of any such permits, licenses, or use authorizations.
2 – Clean Up the Property
Pictures and videos will likely be taken to showcase your property in the listing. Now is the best time to clean up the trash, freshen the landscaping, and clear out the junk so that your property can be highlighted to its fullest potential.
3 – Decide What You Will Do with the Proceeds of the Sale of Your Property.
If you are considering doing a 1031 exchange with the proceeds, now is the time to talk to your tax professional to determine the tax basis and how much you would like to reinvest. You also need to determine what kind of like-kind property you would like to purchase. Ideally, if you can identify the replacement property and execute a sale of your property and purchase of the new property, you lessen the stress of finding the replacement property.
If you want to place the proceeds with a Delaware Statutory Trust or DST, we need to find you the right professional to use for this purpose.
Lastly, let’s talk and see how 3D Real Estate can assist you in the sale of your property. Call Cynthia Daughtrey, 303-548-9659 or email at Cynthia@3drealestate.co.
