Seller Representation: Portfolio Adjustment Time
Pacwest will act on the seller client’s behalf to do the following steps:
PRE-MARKETING PLANNING PHASE
1Analysis the historic performance of the property to identify probable future performance
2Evaluate steps to be taken prior to marketing
- Optimize and normalize rents
- Pre-marketing property inspection
- Identify property defects
- Identify how to deal with observed property defects
- Price adjustment or repair prior to offering for sale
- Obtain bids where advisable
- Identify how to deal with observed property defects
- Identify the pre-marketing plan
- Cure property defects prior to marketing; or, discount the offering for probable cost to cure
- Improve exterior appeal (landscaping and front doors)
- Evaluate existing financing and pre-payment issues
- Tenant lease evaluation
- Coordinate with the property management team
3Identify the optimum asking price and the Most Probable Sale Price
4Execute the seller’s broker employment contract (“Listing Agreement”)
5Identify current loan issues such as prepayment penalties, yield maintenance costs and loan assumption procedures if available.
6Identify the desire to defer capital gains tax by implementing a tax deferred exchange
- If sought, counsel for the benefits sought from the tax deferred exchange
- Identify the character and nature of the desired Replacement Property
- Geographic constraints
- Type of property or properties sought
- Degree of leverage sought
- Consult viable lenders and get seller pre-approved
EXECUTE THE MARKETING PLAN AND CONDUCT THE MARKETING EFFORT PHASE
1Solicit financing options from qualified lenders
- Identify rate and terms available
- Identify probable time frames for a new loan
2Create the Marketing Package and Marketing Brochures
- Designed to generate sincere interest from qualified buyers
- Require confidential handling by interested parties
3Expose the property for sale to known probable buyers
- Protect tenant privacy – no inspections prior to receiving a n acceptable offer from a qualified purchaser.
- Offer on the open market by those procedures best suited for the specific property
EXECUTE THE TRANSACTION PHASE
1Take and present offers
- Assist the seller to evaluate for:
- strength of purchaser
- buyer’s requested due diligence process and time period
- fairness of offer price and buyer’s conditions of the offer
2Prepare a counter offer to clarify obscure points and eliminate unacceptable issues (price, terms, conditions, and procedures of the proposed transaction)
- Present the counter offer and obtain acceptance
3Open escrow with a highly competent escrow and title company
4Work with the buyer’s broker to
- Conduct the necessary inspections; and,
- Secure the necessary financing to allow closing.
5Set the Tax Deferred Exchange “Exchange Agreement”
6Supervise the closing process
EXECUTE THE TAX DEFERRED EXCHANGE PHASE
1Take those actions to pre-screen potentially acceptable properties
2Confirm availability with property owners and their listing brokers
3Offer and negotiate acceptance
4Perform Due Diligence
5Negotiate the new financing package
6Oversee closing
FOLLOW-UP PHASE
1Assure no loose ends
2Review the monthly performance Operating Statements for the Replacement Properties to assure that they are performing as projected
3Quarterly client review sessions.
Is all of this typical performance of real estate brokers? Heavens no!
It costs no more to seek out and use the best.
It costs far less in the end.