Key takeaways
- Most price reductions happen during due diligence. Organized documents protect the number.
- Buyers discount for uncertainty. Fix or disclose known issues before the buyer finds them.
- Price from evidence: trailing income, comparable sales, and the buyer most likely to pay.
Documents to gather before listing
| Category | Documents |
|---|---|
| Ownership and title | Deed, prior title policy, existing survey, recorded easements |
| Income | Rent roll, all leases and amendments, security deposits, tenant contact list |
| Operations | Trailing 12-month income and expense statement, prior two or three years, utility bills, service contracts |
| Taxes and insurance | Recent property tax bills, insurance declarations and loss history |
| Physical | Roof, HVAC, and major repair history with dates and costs; permits; certificates of occupancy |
| Land use | Zoning designation, zoning verification letter if available, site plan, any code violations |
| Environmental | Any prior Phase I or Phase II environmental reports |
A buyer's lender will ask for most of this. Having it ready shortens due diligence and reduces the room for a buyer to re-trade the price.
Physical preparation
Buyers price in every visible problem, usually at more than it costs to fix. Before photography and showings:
- Clean and patch: paint, ceiling tiles, flooring, exterior pressure washing.
- Landscaping and parking lot: trim, mulch, restripe if needed.
- Fix small mechanical items that read as neglect: lights, doors, plumbing leaks.
- Get quotes on larger items (roof, HVAC) so you can disclose with real numbers. Buyers who have to guess discount more.
Make It Ready, a company I own, handles interior and exterior finishing work for listings. When I refer a client to it, I disclose my ownership in writing first. Any qualified contractor can do this work.
Pricing from evidence
Price depends on who is most likely to buy. An investor prices the income: rebuilt NOI and a cap rate supported by sales. An owner-user prices the space: replacement cost, comparable sales per square foot, and what they'd pay to lease elsewhere. A developer prices the land: what zoning allows and what it costs to build.
A Broker Opinion of Value frames those views before listing. See cap rate and NOI for how investors will test the number.
A realistic timeline
- Preparation: 2 to 6 weeksDocuments, repairs, photography, valuation.
- Marketing to signed contract: varies widelyDepends on property type, price, and buyer pool.
- Due diligence: commonly 30 to 90 daysInspections, title, survey, environmental, financing.
- ClosingTitle, prorations, and transfer. See Florida closing costs.
Common questions
What documents do I need to sell a commercial building?
The deed and title information, a survey, all leases and a rent roll, two to three years of operating statements, tax and insurance records, repair and permit history, and any environmental reports.
Should I make repairs before selling commercial property?
Fix small, visible items that make a property look neglected. For large items such as a roof, get quotes and disclose them. Buyers usually discount more than the actual repair cost when they have to guess.
How long does it take to sell commercial property?
It varies by property type, price, condition, and market. Due diligence alone commonly runs 30 to 90 days after a contract is signed.
General information, not legal, tax, accounting, or investment advice. Examples marked illustrative use hypothetical numbers.