There are plenty of variables influencing how long your commercial real estate may sit on the market before acquiring a fresh owner. So, don’t add to the struggle of finding a buyer by not fixing things already within your power that can add value to your property.
Here’s some common reasons why your commercial real estate may be lacking buyer appeal:
Is your business stuck in the past?
What’s OK with you may look very different to a discerning purchaser. ‘If it aint broke …’ is not a strategy designed to thrill a new buyer.
Interested viewers will expect to find proof that your business has a track record that reflects changes in the sector. This includes not only equipment, but also interior and exterior design.
When all you have to offer is inertia, it sends a message that the business is coasting, and you might have flaws under the surface.
The solution is to research your sector and get to know what the profile of successful contemporary businesses should look like. You can do this with discretion online, but if it’s right for your industry you can also check out models of up-to-date and successful practice in your own neighborhood.
This should give you some ideas to refresh your property and improve your salability.
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Why are you not attracting serious buyers?
Do you find yourself hosting only the mildly curious or any number of hard-to-engage browsers? That alone should send a signal that it’s time to rethink your advertising.
Take a hard look at your marketing effort from a potential investor’s point of view.
If you’re attracting only the dull and detached, then maybe you need to inject some passion and personality into your approach.
There’s a parallel here with treading water while you trade: If you can’t raise much enthusiasm about the future potential of your outfit, your buyers may assume you’re too arrogant to bother, or that you can’t have much to boast about.
So be aware of what they’re looking for, highlight any special advantages, spell out what you know your property is useful for, and show them why it has a future.
Does your price reflect the property’s condition?
Generally, real estate sells for what it’s worth. Therefore, what you want to realize for the property is one thing, but what the market thinks it’s worth to a potential buyer may be quite another.
So, if there’s lots to fix up, don’t set your pricing as if everything has just been brought up to code.
Price is always a crucial issue which you must get right in order to sell.
That leaves you with two options: Either, drop your price to reflect the true condition or invest in a proper rehab to bring the condition much closer to what your asking price suggests, and give buyers the feeling they’re getting value for their money.
Above all else, try to make the story you tell about your commercial real estate consistent with all the evidence streams.
So, if what your prospective buyer sees matches what your financials say and is strongly supported by the tone of your advertising pitch too, then you will be in a much better place to secure the deal you want.
Bruce Hakutizwi is the USA and International Accounts Manager for BusinessesForSale.com, the world’s largest online marketplace for buying and selling small and medium size businesses. Bruce has over 7 years’ experience working within the US business transfer marketplace connecting buyers and sellers.