Real estate investment is a serious decision that takes time and lots of consideration. When you are planning to sell your medical practice, location and property value are two fundamental factors in recognizing which market to sell and how to set the price for your medical real estate.
Buyers and sellers both want to get the most benefit from business dealing. Buyers are careful in investing, especially if it is real estate, because as much as they can gain from it after some time, they can also lose big time. On the other hand, sellers don’t want to compromise real value just to make the transaction.
If you are selling your medical real estate, you can get the best value to offer in the market when you consider doing these things:
Maintain the business operation
Slowing down the business while selling real estate will not contribute to its value. It may abate it. An operating and consistent business is more attractive for buyers. It will give them the notion that operating the business there will do good for them.
Continue the usual operation of your practice with minor changes as preparation for the selling. Ensure that selling the real estate will not cost patients to walk away as it can affect the profit and revenue of your practice. These two will be major determinants of the value and price of real estate.
Maximize your profit
Interested buyers will be cautious in checking your practice’s previous performance and standing, especially for the last 12 months. So be wise to provide the documents that will convince them of the value of your practice as a real estate investment.
Make the last 12 months profitable when searching for a buyer. Minimize the cost and maximize the revenue. Cut off unnecessary costs or supplies that can be replaced by an alternative that will cost you less. You can also start decreasing the number of hours your employees work overtime to reduce the payroll. However, make sure that minimizing your cost in those 12 months will not cause you to lose patients. It is still important to provide the health care that each patient deserves to continue the business operation and maintain profit.
Plan when to sell Medical Real Estate
The buyer will pay you based on the value of your medical real estate. If your practice is not doing well and you’re selling it just because you see no future for it, do not expect too much value from it. Overpricing the true value of the business will not attract any buyers unless they don’t know what they’re doing, which is hardly the case.
In correlated reasons with the first two considerations in this blog, the best time to sell real estate is when the practice is doing its best. When you see the return of revenue and good profit without too much cost, consider it the best opportunity to put real estate in the market.
Consider online presence
Almost all business industries gain more opportunities when they make a presence online. So, even if you have found a buyer or not, it is good to put a website and social media account for your practice. It will target several purposes: promote your practice to new patients and increase your profit, build practice reputation to add in “goodwill,” and announce your medical real estate open for proposal.
Website and social media accounts can bring to you potential and interested buyers. All types of buyers come to the internet to search for what they need. Your future buyer may search for a real estate investment online. Present your practice most efficiently and effectively.
Polish your Medical Real Estate
No buyer will make a deal for medical real estate in a poor state. Start polishing the old exterior and interior of the building to present it in good condition and ready for occupancy. Fresh paint, clean flooring, and new furniture will not only make the place look attractive, sanitized, and modernized. Adding recent renovations can also increase the value of real estate.
The first impression can last and may be the basis of the potential buyer for all future transactions and communications. It will be easier for the broker to sell the medical real estate to the best buyer if they are impressed with it the first time they see it. Therefore, do not wait to get a potential buyer before considering upgrading your medical real estate.
Get proper documentation
One reason that blocks buyers from purchasing a real estate investment is the dispute in documentations. As the seller, you should get all the documents and existing contracts ready for presentation to the buyer. Whether you own the property and building or leasing it, you should have the proper documentation that proves your right to sell the real estate. It should also reflect the availability of the real estate and current contracts to be transferable to the buyer. Documentation conflict may bring major problems in selling it.
You can get help from a lawyer for all legal matters or a broker to list everything laid down properly. However, a better option is to have a healthcare real estate investment advisor.
Get a Medical Real Estate investment advisor.
You do not have expertise in real estate selling and investment. You may miss some factors in acquiring and listing when deciding how to get the best price for your medical practice. You may also miss the opportunities to maximize the value of what you are selling.
Healthcare real estate investment advisors are professional and experts in medical real estate investment. They can help you with legal matters and brilliant ideas to maximize your price to the buyer.
Zeustra is a strategic advisory firm with expertise in healthcare real estate investment. We can help you get the best of selling your medical real estate investment.