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SELLING YOUR RESIDENTIAL CARE HOME (RCH)
Selling a Residential Care Home (RCH) can be challenging because Sellers want to keep their intention to sell their Home confidential. In most cases, they choose an EXCLUSIVE listing as opposed to a MLS listing. The latter listing would identify the Home’s address and broadcast to the public and thousands of real estate agents that it is for sale. “Drive-by's,” unannounced visits and phone call inquiries to the home could cause stress to the residents and staff. Also, if your competitors know the Home is for sale they could deflect residents and staff away from your home to their home. In the case where confidentiality is not an issue a MLS listing may be appropriate.
SRI will do the following to successfully sell your home:
1. Maintain confidentiality:
- Use generic photographs with a broad geographical description
- Require all potential Buyers to sign an Non-disclosure Agreement (NDA)
- Screen Buyers for their financial ability to purchase and personal suitability for operating the home. For example, smaller homes require “hands-on” operators. Larger homes require assessing financial capability.
2. Price the Home:
This is one of the most important tasks of the listing process. The Home must make financial sense to the Buyer and to the financial institution that will provide the financing.
- Review recent comparable sales
- Review financials
- Review future opportunities for increasing revenue and profits
- Discuss with the Seller how to present and price the Home to make it attractive to Buyers.
3. Use Marketing tools available to SRI:
- Advertise on our website, which is the “go-to” website for the trade in RCH
- Promote in Commercial publications such as the Business Exchange, the Commercial Investor, Real Estate Advertiser and local press
- Attend and display at industry conventions such as ORCA and OHSNA
- Industrial Commercial and Investment - ICI Website
- Multiple Listing Service - MLS
4. Use SRI data contact bases:
- Owners of Retirement Homes
- Owners of Nursing Homes
- Owners of Community Homes for Opportunity (CHO)
- Owners of Housing with Support facilities
- Pension Fund and Real Estate Investment Trusts (REITs)
- Potential Customer list - This list of contacts has been developed by SRI over the years with data from inquiries by potential buyers for RCH's
5. Qualify the Potential Buyer:
- Communicate to the potential Buyer what the RCH business is about
- Obtain information to qualify the buyer including financial, detail professional qualifications, willingness to relocate, ability to operate the facility etc.
6. Monitor the Sale up to closing and beyond
- Assist in arranging financing
- Assist in the due diligence process
- Liaise with property inspector
- Liaise with appraisers
- Connect with lawyers
7. Managing the Transfer of Ownership
The selling process is a confidence building exercise between all the parties involved to make sure the deal holds together so the Agreement of Purchase and Sale can be executed.
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