What To Do Before Selling a Skilled Nursing Facility
Once a buyer is found for your assisted living and skilled nursing properties for sale, the pressure is typically on the buyer to close the deal in a timely fashion. As the seller, there are several ways to speed the sales process along and maintain the pressure on the buyer to close quickly.
Preparing Your Physical Plant
Chances are your potential buyer has already visited several different skilled nursing facilities or assisted living facilities for sale. Your facility can cut through the competition with low-cost upgrades.
Improve the buyer’s first impression by giving the facility a good deep cleaning inside and out. A fresh coat of paint cleans up scuffmarks and small damages both inside and outside of the building. Reseal the asphalt of the parking lot with a slurry coat, making it look new and smooth. Keep landscaping alive and attractive with regular maintenance.
Ensure that all capital systems are in working order, including heating and air conditioning, plumbing and electrical. Since the buyer will check upon these systems in any case, know the status of these systems and keep records on hand.
Anytime buyers consider care homes for sale, all information regarding the business and its physical plant must be disclosed by the seller.
It is within the seller’s responsibility to attend to all life and safety issues present in the facility. A preliminary title report discovers problems with ownership, easements, liens etc. Most of these issues can take a considerable amount of time to resolve, so it is best to pull a preliminary title report as soon as you decide to sell. This is usually a free service as long as the seller is inclined to purchase the title insurance made available by the service provider.
Documents sellers should have ready to provide include financial information for at least the past three years of operation. This information consists of census reports for skilled nursing facilities for sale and rent rolls for assisted living facilities for sale.
Take inventory of the facility as well, which is helpful in detailing what personal property is included in the sale and what is not, such as personal paintings, furniture, computers and other equipment. Whatever is not included should be removed from the premise.
Prepare for Risk Management
Tail insurance is important to have for anyone listing senior housing for sale. For example, in California and other states, lawsuits can be filed up to two years after the incident, holding the seller responsible for that duration of time after the sale.
- Order a three year loss run from your insurance carrier, the buyer will need this to generate a new insurance policy
- Disclosing all pending lawsuits at the time of the sale will save you time and energy down the road.
Buyers today turn to sophisticated lenders and equity sources that require in-depth due diligence. Starting to collect as many of these items at the beginning of the sales process will help eliminate issues down the road. JCH has a firm understanding of what is required and is here to help during this process.
The JCH Group Delivers Industry Leading Service
The JCH Group is one of the leading senior housing brokerages in the country. Our team is here to help throughout the sales process from the very beginning, to the very end, no matter how short or long this process may be.
For more information on how the JCH Group can help you, contact one of our skilled representatives at your convenience.