Thank you for your interest in our series on how realtors can be successful selling commercial real estate. It’s a different animal when compared to selling residential homes, and realtors need to appreciate that the buyers of commercial or likewise investment properties are doing so to make a profit, pure and simple. It is a business decision, and as such, it usually comes down to the numbers. Given this assumption there are several things realtors can do to maximize the value of the property they are listing and facilitate quality offers from qualified buyers. One of these things, and the first topic of our series, is: The Financing Package.
It is unlikely that a buyer of an investment property will present an ‘all cash’ offer. Although you might get lucky in working with an investor who puts the money up front, a more prudent strategy is to assemble commonly requested lender information in advance of taking a listing, as financing will most likely be required. Lenders request essentially the same information in reviewing a financing application, such as rent rolls, leases, tenant acknowledgements, previous financial statements, previous appraisals, fire/electrical certificates, environmental reviews, etc., so the request for information from buyer to buyer should be fairly consistent. Time is wasted if a realtor must chase the client for information after an offer is presented, especially for information that should be available on day one.
The realtor with a professionally prepared info package can charge a premium for the property because all the guess work has been eliminated for the buyer, which equates to less risk on the deal for them. You will also attract qualified buyers because your property has, in effect, been pre-approved for financing.
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Wednesday we discuss: the VTB discussion.
We welcome your comments.
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