Commercial Property Sales – How to Inspect Commercial Investment Property the Right Way
As a commercial real estate agent, you are frequently inspecting properties for appraisal, marketing, or listing. The inspection process can be greatly assisted when you have a checklist to use by property type. That says that you can have a checklist for office, industrial, and retail property; each list will specially focus on key facts relevant to the property and or the location.
Make no mistake here; the checklist process helps you cover all the right details and the issues that can impact your marketing or pricing decisions. It also helps make you more professional in your presentation or sales pitch on the listing. A property owner will not list their property with an agent that is disorganised or random in recording property detail.
Given that you will only have a short time with the property owner to discuss your ideas, the facts that you raise and questions asked will tell them a lot about you and your ability to take their property successfully to the market. They want the best agent to help them, and you should do everything in your power to show that you are just that.
Marketing a property today is not an experiment; it’s a tough market out there. Only the best real estate agents get the results consistently; experience and professionalism are essential elements to make the listing work and the sale or listing occur.
Here are some of the main facts to question when you are inspecting a property for the property owners for the first time:
- What is their ideal outcome today in marketing the property or taking it to the market for sale or lease? You can assess the possibilities here given the supply and demand for local property. You should know the levels of enquiry from current buyers and tenants and what they are looking for in a new property. Your database of tracked and qualified enquiry is invaluable in this process.
- Have they had the property on the market before with any other agent and if so how did that go and when was it? You will need to understand all the facts here, as repeating the same marketing approach could be a total waste of time for all concerned. In such case alternative prices, methods of sale, or different marketing campaigns will need to occur.
- Are there any weaknesses with the property such as old improvements, obvious repairs required, vacant tenancy space, leases that will soon expire, or a weak tenancy mix?
- Get full details of the property ownership and check it on the property title or local property ownership records. Look for any restrictions, orders, notices, or encumbrances that can impact the use or ownership of the property. Always take notes here as the facts will potentially need review or checking.
- If possible get the property owner to join you as you walk around the property and take your first inspection. They can then answer questions regards history and improvements.
- Take plenty of photographs in the property inspection that can be referenced later.
- List the improvements in the property, together with all services and amenities that are relevant to the buyers and tenants today.
This simple approach will help get you on the track to the right property inspection systems and processes. Use your checklists and ask the right questions; they help you create the accurate listing that you can take to market. Track and record your answers in accurate file notes; you never know when you will need to go back and use them to solve a problem.