In this current market, things can move very fast. A sale campaign generally will be for 4 to 5 weeks, pushing buyers to make a decision and act on an opportunity by a certain date.
To ensure you maximise the value of your property it is important to try to eliminate as many uncertainties or hurdles that would put an investor off or delay them from acting.
Here are five things you should address to ensure your commercial property is sold at the best price.
Land Information Memorandum (LIM)
Order the LIM and review it to make sure there are no outstanding Code Compliance Certificate (CCC) issues or other matters which need to be resolved. If the property has outstanding CCC’s, this can often be a barrier for the purchaser’s lender.
Leases
Ensure all leases have been correctly documented, including the Deed of Lease, Rent Reviews, Rights of Renewals and any variations which have been agreed upon between both parties.
Seismic Rating
In nearly all lending situations, banks will request a seismic report. It is highly recommended you engage a structural engineer to carry out an IEP report before you take the property to market.
Maintenance
If you have any outstanding maintenance on the property it is prudent to consider how your property is presented. Consider tidying up the gardens, applying a fresh coat of paint, repairing broken glass, getting a building wash, and removing rubbish.
First impressions have a lasting impact on buyers, especially in the investment market. Marketing a poorly-presented property can be a concern for investors as they will have to invest further capital in the property to bring it up to an acceptable condition.
Financial Stability
Being able to show potential purchasers that your tenants are financially stable and able to fulfil their financial obligations is a great way to demonstrate the strength of your property as an investment.
One way to do this is to show that the monthly rental and outgoings payments have been paid on time for the last 12 months, either by a bank statement or tenancy statement if the property is professionally managed.
If you are considering selling your property, get in touch with us today. Our expertise and years of experience will ensure you navigate the process and achieve a great result.
