If you have a commercial property to sell, there are various factors to be aware of. You will need to understand the legislation surrounding commercial property sales, local property values and an awareness of what commercial property buyers are looking for from sellers.
Working with local commercial property agents is strongly recommended, as they will not only be knowledgeable in the area that the property is based, but also have specialist expertise in the acquisition and disposal of leasehold and freehold properties.
Today, we will be breaking down the process of selling a commercial property, so you can understand the entire procedure from start to finish. Keep reading to find out more.
Preparing to sell
Just like you would with a commercial property, you should prepare your commercial property to sell it. All clutter should be removed, so your property appears presentable to attract a wider audience and so that your prospective buyer can imagine running their business from the premises.
Preparing buyer information
Before you can begin marketing your property, it is important to understand what your buyers will be looking for. The key considerations for buyers are usually location, suitability, and property price. It is a good idea to prepare a buyer pack to give to prospective buyers, so that they have everything they need to decide.
Items to include:
- Planning permissions, use classes and lawful use certificates.
- Commercial energy performance certificate (EPC)
- Details for business rates, stamp duty land tax and any other costs the buyer will be liable for
- Asbestos survey (if applicable)
If you are marketing your property through an agent, it is likely that they will prepare a marketing brochure for you, so you may not need to worry about preparing this document. However, it is always useful to provide the above information to your agent/surveyor, so they can ensure the marketing brochure covers all the important information the prospective buyer will need to know.
Instructing a commercial agent
As mentioned previously, it is highly recommended that you choose a local commercial agent, more importantly, an accredited trade body, such as the Royal Institution of Chartered Surveyors (RICS).
All reputable agents carry personal insurances, which covers the seller’s damages if you receive negligent advice. A commercial agent will normally provide a detailed valuation report before looking to market your property too, this is to show you how much it is worth.
Solicitors
As well as your commercial agent, you will also need a solicitor. Your solicitor will be responsible for several processes during the commercial sales procedure.
Their job involves looking after any deposits, arranging the exchange of contracts, confirming monies that have been transferred and answering any questions you may have along the way.
To ensure a quick and efficient disposal of your property, it is important to choose the right solicitor. Your solicitor is there to help throughout the process, so feel free to ask them any questions that may spring to mind.
Marketing your property
You can market your property with an agent of your choice, but it is important to make sure your agent understands exactly what you are looking to achieve.
It is useful to provide your agent with the initial relevant information to assist with the marketing of your property. Your agent will normally add to this with detailed descriptions and photographs, using their in-depth knowledge and history of previous sales.
At BB&J Commercial, we have a team of experts who can help market your property across various platforms. This includes on our website, through our mailing list of over 3,800 people, social media with a reach of over 379,000 people and on property listing sites such as Rightmove.
Our priority is to give your property the most exposure for a quick and easy disposal. If this interests you, why not get in contact today? Click here to find out more.
Selling costs
Whether you are planning to sell an office or a warehouse, the process of selling a commercial property does incur a cost. Here are the key fees you need to consider:
- Commercial agent fees – Commercial agents are in competition with each other, so it is worth discussing this with the agent before instructing them to sell your property.
- Solicitor fees – Solicitors usually carry out conveyancing for a fixed fee however, you may be able to negotiate to a lower fee, so it is worth getting a number of quotes to find the right one for you.
- Mortgage redemption fee – If you have a mortgage on your commercial property and you pay this off early, you may be liable to pay for a redemption fee.
- Capital gains tax – You should speak to a financial advisor if you are selling an investment property, as you might be liable to pay capital gains tax.
- Mortgage arrangement fees – If you cannot transfer your existing mortgage for any reason, you may be liable to pay a mortgage arrangement fee for any new mortgage you require.
- Removal costs – If you have equipment, furniture or other assets in your commercial property and these are not part of the sale, you will need to arrange for these to be removed at your cost.
Property value
The amount your commercial property is worth is subject to a variety of contributing factors which include:
- The price of recently sold properties in the surrounding area.
- Market trends.
- Availability of similar properties.
- The condition of the property.
Accepting an offer
All offers you receive for your property should go through your commercial agent. They are required by law to inform you of any offers that have been received.
Your agent will be able to formally advise you of any offers, but if you receive more than one, the following points may help you figure out which buyer would be the best option for you.
- Consider the position of the buyer and their financial status.
- Whether they are a cash buyer or have a mortgage.
- If their mortgage is already in place, or if they have a mortgage offer.
If you have accepted an offer, a draft sale agreement will be prepared for you and the purchaser to approve.
Exchange of contracts and completion
Once contracts are exchanged, your buyer will pay a deposit to the solicitor and a date for completion will be agreed. On the day of completion, all legal factors of the sale are completed, and the mortgage lender will then release the funds to the solicitor.
This is a typical description of the commercial property sales process, but it is worth noting that all sales are completely different, as they differ depending on the nature of the sale.
Are you looking for assistance with the disposal of a commercial property? Get in touch with our property experts today by calling 01332 292825 or email your enquiries to commercial@bbandj.co.uk.
