Do you own property that is used for non-domestic, commercial purposes? If you're thinking about selling your commercial property, whether it's currently used as office space, student accommodation, for industrial use or retail space, it pays to be aware of how this process differs from selling domestic property.
To ensure your commercial property sale goes off without a hitch and you get the most out of it, be sure to follow the steps below.
How to Sell Commercial Property
Prepare your commercial property for sale
Before selling any property, regardless of whether it's domestic or commercial, you should take time to declutter and make the space more presentable. You want potential buyers to be able to imagine themselves operating a business there, and all your clutter could put them off. Similarly, if the property looks like it needs a lot of work, including maintenance and renovation, it could deter buyers.
Determine the value of your commercial property
To secure a profitable sale price, you should take time to research your property's potential value. While a commercial property agent will be able to help you value your property, not everyone opts to use one.
To effectively value your commercial property, here are the factors you need to take into consideration:
Location – Is the property located in a developing, prosperous area? Is it located near to amenities such as shops, restaurants and leisure facilities? Is it easy to access by train, bus or road? Does it have good parking options?
Availability of other similar properties – If there is an abundance of other similar properties in the area, this could lower your sale price.
Condition – Is your property in optimum condition? Does it require maintenance or renovation?
Potential income generation – How much income could your commercial property generate for a business? A property that can make a lot of money will be valued higher when selling.
Gather commercial property information
Before you kickstart the process of selling commercial property, you should gather the appropriate information your buyer will need.
Energy performance certificate (EPC)
Use classes – Information about how the property can legally be used.
Health and safety information – Asbestos report, fire risk assessment etc.
Commercial property standard enquiries (CPSEs) – Your buyer will send enquiries and you need to answer them before the sale can be completed. Your solicitor will help you with this paperwork, but it helps to be prepared in advance.
Market your commercial property
You have several different options available to you when it comes to marketing and selling your commercial property.
Firstly, you could choose to use a commercial property agent, who, much like a normal estate agent, will be able to help you with all aspects of your sale. Alternatively, you could put your commercial property up for auction. Another option is to handle all aspects of the sale privately, or you could prioritise a quick turnaround and contact a fast property buyer.
Instruct a solicitor
Property sales involve a lot of legal jargon, regulations and paperwork, and selling commercial property is no exception. Once you have found a buyer, you should contact a solicitor to guide you through the legal process. Your solicitor will be responsible for handling the drawing up and exchange of contracts, financial agreements, transfers and any other important paperwork along the way.
The Costs Involved with Selling Commercial Property
Investing in commercial property tends to be very rewarding, particularly if you have invested in a developing area. However, as with any property sale, selling commercial property can involve a lot of expense.
Here are some of the expenses you can expect to pay:
Commercial agent commission – Your commercial agent will be able to help you with all aspects of your sale, but they will charge a considerable amount for the privilege.
Solicitor costs – Solicitors are a necessary expense, but their fees can be quite high.
Capital Gains Tax – If you gain a profit from selling a commercial property you have invested in, this tax may apply to you. You should speak to a financial advisor to confirm the details.
Sell Commercial Property Fast
If you're looking to sell a commercial property fast, without the hassle of having to deal with multiple parties and paying high fees, you should consider contacting a fast property buyer like Zoom.
We can take a commercial property off your hands quickly, and you could have the money in your account within 7 days.
To capitalise on a property investment by completing a fast house sale, give us a call on 0333 880 4362 or complete our online form today!