Selling a commercial property is no different to selling a home, right? Well, right and wrong. Selling commercial property relies on many of the same pillars that selling residential property does, but in some ways it is a very different undertaking. It can be a much more intense process than selling a home; the market is highly competitive and potential buyers are very discerning. Take a look at our step by step guide to help guide you through the process.
1. Find the right agent
When selling commercial property, finding the right estate agent is key to a quicker and smoother sale. Don't just rely on positive recommendations from friends, but also ask other successful commercial property owners in the area of their experiences. It’s important to choose not just a good agent, but a good commercial agent, who’s well versed in this field. Look at their successful sales figures for this year, but don't be drawn in by just an impressive looking number. Successfully closing 30 properties looks fantastic, but did they close 30 deals out of 30 listed or 30 out of 60? Online testimonials can be insightful too. Once you've found your agent, they’ll use their extensive experience and good reputation to propel your property onto the market, both into the right hands and at the right price.
2. Price appropriately
When selling commercial property you want to price it right first time to avoid having to reassess and make a reduction. Your commercial real estate agent can run a ‘comparable properties’ report to help you decide on a suitable price, taking into account similar properties in the area. You can also have several valuations carried out by independent parties, and you might want to view similar properties in order to get a sense of your local market competition.
3. Market thoroughly
Good marketing should also be thorough marketing; all relevant media avenues should be covered. Having a strong physical advert in the estate agent window and outside your property is one thing, but your property should also be showcased across internet platforms, online databases and social media for optimum awareness. Talk to your estate agent about using your marketing budget to target the right demographics and also budget for high-quality photographs.
4. Spell it out to investors
Ask yourself, to whom should I sell my commercial property? Who exactly will it appeal to? Make sure both you and your real estate agent have a detailed understanding of what your property has to offer such as location highlights, demographics and vacancy versus no vacancy. You can then assess which businesses or which type of investors stand to be most interested, saving time and your marketing budget by not advertising to uninterested parties.
5. Be prepared
When selling a commercial property you should ensure all documentation is up to date and on-hand, ready to provide the second a potential buyer requests it. You should also ensure all repairs are complete and the tenants, if there are any, are aware of the sale and the terms of their contracts. Having everything in order and ready for the next buyer is reassuring to them and makes successful closing more likely.
Ready to sell your commercial property? Take a look at our commercial sales page to begin the process and meet one of our knowledge-based commercial real estate