Selling a property can be complicated. It requires you to obtain and fill out a good amount of paperwork. This rings true even with the help of an agent. To help you out, we made a list of the documents you’ll need to prepare to put your property up on sale.
Proof of identity and address
This is a no-brainer. You need to prove your identity and it must match that of the other documents to be provided to show that the property is yours. It can be a passport or a driver’s license. You’ll also need proof of address, such as a bank statement or a utility bill.
Property title or original sales contract
The original sales contract or the property title is the agreement made with the previous owner from whom you brought your property. This document includes information such as the price at which it was sold, and other disclosures made before the sale. You might also have to obtain official copies of the deed from the Land Registry. Make sure that the title is clean and free from claims and other legal questions regarding ownership.
Zoning and property codes
These documents will show that your property is compliant with the zoning rules, property codes, land use classifications in your municipality. For newer buildings, the certificates of occupancy might indicate compliance with property codes.
Repair and maintenance records
These records will show all the repairs and upkeep you’ve done on your property. These can also let potential buyers know what things might need immediate attention after the sale. These records include maintenance receipts, appliance warranty plans, records of painting and window washings, as well as utility maps for electric and gas systems.
Receipts for capital improvements
Collect and compile receipts that will show the improvements you’ve done on your property, such as remodeling, extensions, and the addition of new structures. These changes can add to your adjusted cost basis for your capital gains. Do note, however, that these only include changes that have increased your property’s value.
Manuals and warranties
While these are not required for a sale, these documents can be useful for when you want to increase the value of your property. If you plan to include appliances in the sale of your property, make sure the manuals and warranties are complete to let buyers know what state they’re inheriting the items in. These items can include office pantry appliances, stoves, garbage compactors and disposals, and even smart security devices.
Past utility bills
Past utility bills will help your buyers assess the average cost of utilities in maintaining the property. Buyers usually ask for either a 12-month or 24-month average cost. These include electricity, water, gas, and sewer bills.
Comparative market analysis
This report compiles information on property sales in the immediate vicinity of your property, including ongoing and recent sales. These will help determine a strategic price for your property. If this might seem too complicated, a real estate agent can easily draw one up for you.
Listing agreement and proposed marketing plan
A listing agreement is the official agreement between you and the real estate agent, giving them rights to sell your property within a given time frame. This agreement includes terms needed to sell the property, such as the use of photos and videos of the property. A marketing plan will be drawn up by the agency, and will include the plan for property tours, showings, social media, and print marketing.
Seller’s net sheet
A seller’s net sheet will show how much you will earn from the sale, after factoring in taxes, fees, remaining loans, and your agent’s commission. The real estate typically prepares this, but you can also do so if you’re confident with your numbers and computational skills. An accountant or a lender can also make the seller’s net sheet for you.
This might vary from state to state, but there are certain disclosures you must fill out when your property is on the market. Some common examples are the Transfer Disclosure Statement and Natural Hazard Disclosure Report, and disclosures on water damage, environmental hazards, and past disputes. These will help you avoid future legal issues.
Sell your CRE in Pennsylvania with RE/MAX Direct
You’re almost good to go. To make the selling process run smooth, check this guide with steps in selling a commercial property. Our agents at RE/MAX Direct offer design, marketing, and sales solutions for real estate buyers, sellers, developers, and investors.