Congratulations! You’ve made the decision to move on from a particular brick-and-mortar store location. Whether you’re retiring, shifting gears or simply downsizing, selling your property represents an exciting new chapter in your journey, even if it feels more stressful than exciting at this very moment.
Before you put up the “For Sale” sign, there are crucial legal and practical considerations to help ensure a smooth and successful transaction.
Understanding your options: Selling together or separately?
One of your first decisions is whether to sell the land and building together as a single unit or separately. Selling together often attracts a wider pool of buyers, particularly established businesses looking for a turnkey solution. It can also have the potential to fetch a higher price since the buyer acquires a fully operational location.
Conversely, selling the land and building separately can allow you to target specific buyer segments. Land might appeal to developers or investors with their own vision, while the building could attract a niche business seeking a pre-existing structure.
Valuation is key
Accurately valuing your property is paramount. Overpricing can deter potential buyers, whereas undervaluing leaves money on the table. One of the strategies you can use to establish a fair market value is a comparable sales analysis.
This involves researching recent sales of similar properties in your area. Consider factors like size, location and zoning restrictions. Don’t forget to invest in an extensive appraisal to help ensure an unbiased and professional assessment of your property’s value.
Legal considerations
Selling commercial real estate involves legal complexities you can surpass with a thorough title search. This can help verify your ownership rights and identify any outstanding liens or encumbrances on the property.
You’ll also be required to disclose certain information about the property, such as any known environmental hazards or structural issues. More importantly, you should invest time and effort into drafting and negotiating sales contracts to help ensure all legal requirements are met.
Selling your former store location can be a rewarding experience. By carefully considering your options, obtaining a fair valuation and utilizing legal counsel, you can potentially maximize your returns and help ensure a smooth transaction. With the right preparation and guidance, you can successfully close this chapter and embark on your next exciting venture.