If you've been on the first rung of the commercial property ladder for a few years now, it might be time to take another step. If it's the right period in your life to make a larger investment, or indeed another investment, you have two options: sell your existing commercial real estate and move onto greener pastures, or add to your portfolio.
Your decision must depend on your financial situation. If you have a significant amount saved and ready for your next big money move, you might be able to purchase a second investment right away. If you don't have that sort of financial security, you might have to use some equity from your current property / properties. Either way, professional assistance will make the process of selling, buying or looking around much more efficient.
It seems simple, but the only thing you really need when selling any real estate is the right buyer. They'll give you the money you want for your property and settle in a timely manner. Sometimes, however, that person doesn't come along, which means you'll need some advice about how best to sell your retail space or industrial real estate to make it advantageous for you.
An experienced real estate agent from Ray White Commercial Gold Coast has a wealth of knowledge regarding what other properties in the region sold for as well as how to market to the most suitable audience. If you're selling a retail space, for example, you won't be trying to attract manufacturing businesses.
When you know a target sale price and who your audience is, you can start showing the property to interested parties. If the real estate is to their liking, they'll make an offer – simple as that. It's then up to you to discuss with your real estate agent the best move (i.e. should you agree or negotiate?).
If selling isn't on your cards, you can start looking at buying a second commercial property and expanding your investment portfolio. You have a few options, but the first thing you need to do is figure out exactly how much money you have to play with.
A loan will help, and how much the bank decides to lend you will depend on your saved deposit plus any equity you wish to put up from your first commercial property. When you know how much you can spend, you can start looking around for appropriate real estate for sale. Again, your Ray White real estate agent will know what's on the market that will suit your interests (be they industrial, commercial or retail).
Finding the right property takes some consideration – it's not something you can tick off your to-do list in a day. You have to search around, visit different sites and have conversations with the people in your life that it will affect, as well as conduct thorough due diligence checks.
When you find a perfect piece of real estate, it's time to submit an offer. If you're working with a professional real estate agent, they'll know approximately what other similar real estate has sold for recently, as well as what the owner is looking for. That way, you won't be wasting your time submitting an offer that's hundreds of thousands of dollars away from what they'll want, nor will you lodge an offer way above the true value of the property.
Buying and selling commercial real estate takes some nous, and there are certain steps you have to take to be successful. It's more than just listing a property and waiting for it to attract the right buyer, or driving onto an attractive site and negotiating on the spot for the title deed.
For more information about buying and selling commercial property to expand your investment portfolio, get in touch with Ray White Commercial Gold Coast today.