Thursday, October 4, 2012

Commercial Restaurant Real Estate How to Make It Sell

The longer a commercial property stays on the market, the less attractive it becomes to buyers. This is especially true for restaurant properties, which tend to sell quickly when they feature high revenue potential. While an establishment's revenue potential is important, it is not the only key to its sale; also important is making it presentable as real estate, both on paper and to the eye. Below are six tips for accomplishing both of these things.

Try to sell when business is good

Some restaurateurs plan to sell their establishment but do not set a sale date, which means that they can wait until their restaurant's business history is encouraging to investors. Because much of a restaurant's worth is based on its revenue potential, selling a restaurant while its business is on a high note can yield a high sale price.

Resolve outstanding repair issues

If a property has nagging repair issues, its owner should fix them before presenting the property. In many cases, the benefit of resolving repair issues is mostly psychological: when potential buyers do not notice problems with a property's construction, d├ęcor, or equipment, they do not suspect the presence of hidden problems, which equates to increased buying confidence.

Invest in landscaping if curb appeal is drab

A restaurant's mediocre curb appeal may not turn customers away, but it could certainly turn buyers away. In many cases, an establishment's curb appeal can be improved significantly for about $2,000. For properties whose landscaping needs would exceed $2,000 an "as is" sale might be in order, especially if the work would not improve a restaurant's property value.

Have the establishment and its property professionally photographed

Regardless of how great an establishment looks in person, it needs to look good on commercial restaurant real estate websites as well. One the most underrated selling strategies, having an establishment professionally photographed is critical to making a good first impression, especially considering the thousands of investors who will view a property online. Considering the low quality of the photography on most realty websites, a property with great photographs would definitely stand out from the pack. Hiring a photographer who has experience photographing real estate is the best option.

List the establishment strategically

When listing it for sale, an establishment's owner should use several listing resources to generate maximum interest. For example, in addition to listing in local newspapers and magazines, a property should also be listed on restaurant realty websites and websites that sell various commercial properties. Properties that are only advertised locally usually stay on the market longer than ones that are advertised nationally.

Consult realty experts on how to sell a restaurant

Even if you decide to sell your eatery without the help of a realtor, consulting a realtor about the sales process can yield valuable advice. A realtor can also tell you what to expect as the sales process moves forward. In addition to realtors, attorneys that preside over restaurant sales, and consultants that help their clients buy and sell restaurants, are excellent sources of advice.

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