Guide to Selling Commercial Property
If you are looking to sell your commercial property, there are several different factors you need to be aware of and take into consideration. For instance, you will need to understand the legislation related to selling commercial property, the local commercial property prices and recognise when the best time to sell up is. As it’s not just the buyer who will have to pay during the process, you need to be aware of the different costs involved as a seller in advance so you can plan and prepare for those.
To give you a better idea of what is involved, we have put together this guide, so that there are no shocks or surprises along the way as you try to sell your commercial property.
The Costs Involved as a Seller
It doesn’t matter if you are selling a warehouse, office or another commercial property, there are a variety of costs that need to be considered. Including,
- Solicitor costs – it is normally your solicitor that will conduct the conveyancing on a fixed fee basis. You could try and negotiate for a lower price. We would recommend you get a selection of quotes from different firms.
- Estate agent costs – if you are looking to sell through an estate agent, you will have to pay for their services and as it is very competitive, you are best shopping around to find the best rates. Generally, they charge anything from 1 to 3% of the value of your commercial property, but there is often room for negotiation.
- Mortgage Redemption Costs – if you have paid off the mortgage on your commercial property earlier than agreed you may have to pay a redemption charge. Check with your mortgage provider to see if you are liable to pay these kinds of costs.
- Capital Gains Tax – you should check with your financial advisor before selling your commercial property to see if you need to pay any capital gains tax.
- Mortgage Arrangement Costs – if you are unable to transfer the mortgage you have, you may be required to pay arrangement t fees to sort a new mortgage.
- Removals Expenses – if you have any furniture, equipment and assets currently housed in your commercial property that is not included in the sale price, you will need to decide for them to be removed and taken to another location.
Prepare Information for Buyer
Before you start trying to market and sell your property, you need to understand what potential buyers will be looking for. Primarily, they will be interested in the price, suitability, and location of your property. It is a good idea to put together a pack you can give to them including all the important information they need that will help them decide whether your commercial property is right for them or not.
- Planning permission that exists for the property
- Use classes and any lawful use certification
- EPC certification for commercial property
- Business rates, stamp duty land tax and other related costs that the buyer will have to pay
- Asbestos survey, showing evidence of its presence or that it has been removed
If you choose to sell your property through a real estate agent, they will be able to provide you with more details on the information you need to give potential buyers.
Preparing Your Property
As you would when selling a residential property like your family home, you need to start preparing your commercial property before you sell it. You want prospective buyers to be able to see themselves in your property, so clean, tidy and repaint it, at the very least.
Tips for Accepting Offers
If you are selling through an agency or agent, all offers should be made to them. What do you do if you have several offers? Consider the following questions:
- What is the buyer’s position and financial status?
- Are they looking to buy with cash, or do they own a mortgage?
- Do they have an offer for a mortgage, or have they secured a mortgage?
It is important to remember that until you have exchanged contracts, as is the case with residential property sales, however, there is no property sale chain, and the process is more straightforward and quicker.
If you want to avoid the hassle of dealing with buyers, solicitors, and estate agents though, you may want to sell commercial property to a cash buyer like Cash Home.