Owner’s Guide to Sales Preparation
Listing Your Income-Producing Property
If you’re thinking about selling your RV resort, campground, or manufactured home community, the good news is now is a good time to do so!
Why it’s a Good Time to Sell
- Buyers are in abundance.
- Bankers have eased their grip.
- Capital gain taxation is still at 15%.
- Interest rates are so low; even lower than before the recession!
- Buyers are more secure with the economic financial offerings of today.
- Overall industry statistics show occupancy is on the rise, with Florida leading the way!
- Baby-boomers, the largest generation, are stepping more and more into retirement.
Preparing for the Sale
Two points you should consider when thinking about listing your business.
- A deal works only when it benefits both parties, so asking $6M for a package that’s worth $3M will mean long periods of inactivity. All the effort exerted by the seller will be for naught.
- Time is valuable to the buyer, the seller, and the broker. Be readily available to provide additional information on your property throughout the sales process. The longer it takes to respond to buyer requests, the more unsure or unsettled the buyer may become about your listing.
What’s Next?
Partner with an experienced broker Some sellers prefer to consider the option of selling without a broker. You can do that! It’s not impossible. However, to ensure the highest price with the shortest sales completion time, you’ll want to choose a broker with both experience in the industry and connections to buyers looking for their next investment property.
The Listing: Deciding Off or On Market Listing a place invariably comes with a sense of hesitancy to publicly announce that the business is for sale. Sellers often want a buyer, yet they don’t want anyone to know that the place is for sale. Fortune Real Estate can achieve anonymity surrounding the sale of your property through various tactics. This includes creating a listing with minimal details and only sharing specifics of the property once a confidentiality agreement is signed by the interested party. However, when it comes down to whether your property should be off or on market, the answer is, it’s a matter of preference. You should decide which of the two options will work best for you and your property.
Seller Financing: Whether or not to consider If you don’t want to have any part of seller financing, you are certainly allowed to seek only buyers who have the ability to afford your property without your assistance. Before you close the door on this idea of seller-financing, please consider this:
Seller-financed properties bring the highest price, and they satisfy the largest percent of buyers. Cash sales actually lower the price because of the cost of financing, and they hinder the ability to leverage the money.
Simple Example: If a buyer has $500,000 cash for the purchase (not counting his funds to cover start-up costs) and is qualified to finance 500,000, the buyer is limited to a sales price of $1,000,000. If a seller is willing to finance part of the deal, the buyer can now afford to buy a higher priced business, dependent on the amount the seller is willing to finance.
Conclusion
- Not all buyers are prepared to enter into a purchase agreement today, although many are well-prepared to act as soon as the right property is located. Is your place the place of their dreams? Maybe!
- Historically, some listings are out there for a few years, while others were purchased within a matter of weeks or months. A major part of this is the full sales package.
- It’s wiser to list before one reaches burn-out (a property tends to only go downhill from that point!).
- Financial Sales Package is comprised of the price, sales structure, terms, down-payment, and the flexibility of the seller in assisting with the financing.
- Operational Sales Package could include the amount of land, equipment list, retail inventory list, current reputation, desire of the buyer to maintain vs evict the former clientele, retention of current employees, location, surrounding area, availability of opportunities to expand operations, and so forth.
- Some buyers will only entertain waterfront parcels, while others demand urban settings. Fortune Real Estate’s job is to match their buyers with properties and to achieve satisfaction for the buyer and the seller.
- At no other point in time over the past 30 years has Fortune Real Estate had this volume of potential buyers in the database!