Sell Commercial Property Fast

Looking to sell your commercial property, but unsure where to start? As you may have already assumed, selling commercial properties is slightly different to selling a residential property. This page intends to delve into how you can sell your commercial property in the simplest way possible.

How To Sell Commercial Property

When it comes to selling a commercial property, there are many factors you need to be aware of. Throughout, you will need to have basic knowledge about legislation surrounding your commercial property.

• Prepare to sell – you need to create buyer information about your property so perspective buyers can consider purchasing. Within this, you need to include an asbestos survey (if applicable), details about business rates (stamp duty and other costs), an energy performance certificate, and planning permissions.
• Instruct your commercial agent – when choosing an agent, select one that is an accredited member of a trade body.
• Solicitors – to sell your commercial property you will need both a commercial agent and a solicitor. Your solicitor will be in charge of the legal side to sell your commercial property as quickly as possible.
• Marketing your property – when selling your commercial property, you can choose any agent, however they need to have a great depth of understanding about your main aim of selling your property.
• Selling costs – there are around six different costs that you must take into consideration when selling your commercial property; solicitor’s fees, removal costs, mortgage arrangement fees, capital gains tax, commercial agent fees, and mortgage redemption fees.
• Property value – valuing your commercial property can be a lengthy process. To include all the right details for you, this is displayed in the next section.
• Accepting an offer – any offer you receive should come via your commercial agent, as by law, they are required to inform you. Your selected agent will be able to advise you on any offers made. When you accept an offer, a sale agreement will be made.
• Exchange of contracts – once the legal side has been finished, and your buyer has paid a deposit, then a completion date will be agreed. This will be the end of the sale and everything will be completed.

How To Value My Commercial Property

When it comes to selling your commercial property, calculating the value can be a complicated task. Unlike other financial assets, the majority of commercial estate agents don’t trade in exchange with openly quoted prices. They usually send a valuer to estimate the selling price.

Your commercial property will be valued on its Net Operating Income (NOI) that it generates each year. This is used as it can be hard to find similar properties in the area that have the same commercial purposes as your business.

To calculate the NOI, valuers will take into account the actual income of the property and then proceed to subtract any operating expenses (apart from mortgage payments). If your commercial property is a new build, this will be based on the expected income of the property.

The final step the calculation is to divide the NOI by your average yield rate. This is the rate that investors can hope to get as a return at the end of each year. 

Commercial Property Selling Fees & Costs

As expected, there are costs involved when selling your commercial property:

• Commercial Agent Fees – commercial agents always compete with one another. So before settling on one agent, have a discussion around their competitors. On the bright side, commercial agents tend not to charge a high fee.
• Solicitor's Fees – when selling any type of property, you need to enlist a solicitor to help with the legal side of your sale. They usually carry out fees for conveyancing, however you may be able to negotiate a lower fee.
• Capital Gains Tax – before selling, discuss with your financial advisor about CGT as you may be liable to pay this cost.
• Removal Costs – if your company uses any type of equipment or furnishings that will not be part of the sale, you will need to arrange to have these removed at your own cost.
• Mortgage Arrangement Fees – if, for whatever reason, you are unable to transfer your existing commercial property’s mortgage, you may be liable to paying mortgage arrangement fees.
• Mortgage Redemption Fees – if you have a mortgage on your business’ property, but pay this off early, you may be required to pay a mortgage redemption fee.

Types of Commercial Business Properties

There are all sorts of different types of business properties that business owners want to sell, such as:

• Offices
• Hotels – casinos, resorts, boutique, full-service, etc.
• Retail – community centres, shops, shopping centres, etc.
• Industrial – warehouses, heavy manufacturing, flex industrial, storage and distribution, etc.
• Special purpose – churches, arcades, bowling alleys, etc.

Preparing The Buyer Information

If you are looking to sell your commercial property through whatever means then your buyers will be looking for a few bits of information that you should make readily available. Here is some of the information that you may require in order to sell your commercial property:

• Energy Performance Certificate (EPC) for commercial property
• Any planning permissions, lawful use certificate and use classes
• Absestos survey if required
• Details of your business rates, stamp duty land tax and other costs the buyer may need to know

Sell Your Commercial Property Quickly

There are many different reasons why you may need to sell your property quickly. Maybe you have seen a new premise for your business to move to, but you are struggling to find a buyer for your current property. Or maybe you are switching from trading offline to online and need the cash quickly to spend on your online marketing. Whatever the reason for selling your commercial property fast, there are different ways you can get cash quickly:

• Auction - this can be an easy and useful way to sell your commercial property, especially if you need to sell quickly. At the auction, you can sell your business premises no matter what the condition. However, with auction there is no control over how much you may receive for selling your property. So, if you have a target of how much you would like to gain from selling, this may not be the selling method for you.
• Raffles - one of the more unusual methods of selling your property is through a raffle. You can sell your commercial property by having your property as the first prize within the draw. However, similar to the auction, it is unpredictable how much money you receive from selling through this method.
• Property Buying Companies - within the industry, there are a lot of quick sale companies that can buy your property for cash. Although they will not be able to offer you the full market value, they will generally offer you a fair price. However, make sure you research into the company before you choose the right one for you. Some have hidden costs and work with third party companies.

Why Sell Your Commercial Property To Us?

Struggling to sell your commercial property? On average, we buy any property within two to three weeks. We are regulated by The Property Ombudsman and the National Association of Property Buyers which means we make sure our customers are protected at every stage of the buying process. The Property Buying Company always endeavour to build a rapport with our customers and we’ll only ever allocate one agent to a case which means you’ll always have a point of contact that you’ll recognise. This is one of many reasons why we get some amazing reviews online from our customers.