How Do I Sell My Commercial Property?
If you own a commercial property you are looking to sell, you may be asking the question posed above. To successfully sell your commercial property, there are various factors to consider and legislation to understand. In the following post, we are going to discuss what you need to do to sell your commercial property.
Preparing For Selling
You need to prepare it for selling, which means removing any clutter, and making it as presentable as possible for your target buyers. That could mean giving it a deep clean or hiring a company to do it or even redecorating and making repairs.
Prepare Buyer Information
There is no point in trying to sell your property if you don’t understand what potential buyers are looking for. Location, price, and suitability are, generally speaking, the most common concerns for commercial property buyers. It may be a wise idea to put together a buyer’s pack so that all potential buyers have all the information in one place to help them make an informed decision about whether to buy your property or not.
Items you need to include in your buyer’s pack are:
- Any lawful use certificates, use classes and planning permissions
- Asbestos survey (if your property is applicable)
- The Commercial EPC or Energy Performance Certificate
- Information about the stamp duty land tax, business rates and any other taxes or costs the prospective buyer would be required to pay.
Working With a Commercial Property Agent
When you are selling your commercial property, it is best to seek out the help and guidance of a fully trained and experienced commercial agent that has membership with a fully accredited trade body, like the RICS or Royal Institution of Chartered Surveyors or something similar.
That way you can be sure that they carry their own personal insurance, that can cover your damages if the advice they give you is negligent. Initially, any good commercial agent will provide a comprehensive valuation report on your commercial property before they start trying to market it.
Hiring a Solicitor
In addition to a commercial agent, you need to hire a solicitor too. They are responsible for some crucial processes in the commercial property sales procedure.
For example, the solicitor looks after the deposits, arranges the contracts exchange, and confirms whether the money has been transferred into the account or not and also fields any questions that arise throughout the process.
If you want to have a quick and smooth commercial property sale, you must choose the best solicitor for the job.
Marketing Your Commercial Property
Although you are free to market your commercial property with whoever you like, you should choose an agent that knows what you want to achieve.
You should provide your commercial agent with the important information you think the buyer should know about the property. In addition to this, they will usually add more detailed and marketable descriptions along with photographs, drawing from their experience and knowledge of commercial property sales.
The Costs Involved
It doesn’t matter what type of commercial property you are selling; the following is a list of costs that you will likely need to consider:
- Commercial agent fees
- Solicitor fees
- Mortgage redemption fee
- Capital gains tax
- Mortgage arrangement fees
- Removal and moving costs
Commercial Property Value
This will obviously be something you are interested in. The value of your property depends on several factors, such as:
- Price of recently sold commercial properties in the same area
- Trends in the property market
- What available properties that are similar to yours are
- Property condition
Accepting A Suitable Offer
All offers you get for your commercial property must be directed to you through the commercial agent you hired. They are bound by the law to inform you of all offers you receive.
While your agent will be able to advise you, if you get more than one offer, think about the following when trying to choose the right buyer:
- Consider the buyer’s position and their finances
- Do they have a mortgage or are they a cash buyer?
- Do they have a mortgage in place, or have they simply been given a mortgage offer?
Contracts Exchange and Completion of Sale
The final stage in the commercial property sale process is similar to that of a residential property sale. Once you have exchanged contracts with the buyer, they need to pay a deposit to your solicitor and you both need to agree to a completion date. On the completion date, all the legal factors will be completed, and the mortgage company will release the money that remains to your solicitor.
If you would like a simpler commercial property sale, you could consider selling to a property cash buyer.