What is the Fastest Way to Sell a Commercial Property?
Selling any type of property can be a long and drawn-out process, whether it’s your own home or commercial property. Particularly if you choose to sell through one of the more traditional routes such as an estate agent.
Although similar in that sense, as you may imagine, there are a lot of differences between selling residential property and selling commercial property. If you are interested in making a quick sale of business property, you need to understand the process a bit better first.
In the following post, we are going to discuss the process of selling commercial property and then will offer some advice on how to speed up that process.
How to Sell a Commercial Property
There are various factors you need to take note of when selling commercial property. Throughout the process, you must understand the basics of property law and legislation.
- Preparation Before Selling – you need to produce buyer information about the commercial property you are selling that tells buyers everything they might need to know. That includes having an asbestos survey (when applicable), business rates information (costs like stamp duty etc.), EPC and any planning permissions
- Instructing a Commercial Agent – when you are choosing an estate agent, you should choose one that is a fully accredited member of a recognised trade body.
- Engage With a Solicitor – Along with a commercial agent, you will also need a solicitor, who will take care of the legalities related to your commercial property sale.
- Marketing The Property – you are free to choose any commercial property agent. If you want to have the best success it is best to choose one with extensive knowledge and a success rate when it comes to marketing and selling commercial property.
- Selling Costs – there are several selling costs you need to factor into your planning, including commercial agent fees, solicitor fees, mortgage repayments arrangement and redemption fees, capital gains tax and removal expenses.
- Value of the Property – you need to have your property valued and this part of the process is long enough on its own without the rest taking a long time.
- Accepting an Offer From a Buyer – when you are selling commercial property the traditional way, any offer made should be directed to you through your commercial agent and they are legally obliged to tell you. When an offer has been made that you want to accept, the sale agreement will be drafted up.
- Contracts Exchange – after the legalities have been handled with your commercial property sale, and after the buyer has paid the deposit, a completion date that suits all involved will be set.
A Bit More About How You Value Your Commercial Property
Generally speaking, with commercial properties, calculating their value is a bit more complicated. Compared to other financial investments and assets, most commercial estate agents do not trade in exchange for quoted prices that are publicly known. It is more often the case that they would use a value to calculate a reasonable selling price for your property.
Commercial property is valued based on the NOI or Net Operating Income it generates every year. The reason this figure is used is that it can be difficult to find two properties that are used for precisely the same reasons in the same geographical area.
The NOI is calculated by considering your actual income and then subtracting the various operating expenses, minus any house repayments.
The last stage in this calculation is then to divide NOI by your commercial property’s annual yield rate. What is that? The rate any investors could hope to get every year from the property.
Selling Commercial Property Quickly
As you can see, selling commercial property is very difficult and involves a lot of steps. There are many reasons why you may want to sell up a lot quicker than you can go down the traditional route of a commercial estate agent.
If you are looking to sell up quickly, don’t worry as there is one great alternative to using a commercial estate agent – a property cash buyer like the company Cash Home. There is no hassle, no fuss and often the deal can be completed within a couple of weeks.