Steps in Selling a Commercial Property | 6 Steps Discussed By Expert
Successfully closing the sale of a home on your own can be difficult. As daunting a task, it may be, it is nevertheless not impossible. When you consider selling a property, there are several important things you need to know before setting a price. Real estate is a complex process in the sale of commercial real estate. If you’ve never sold a commercial property before, you may be wondering where to start. Let’s discuss the steps in selling a commercial property.
Selling a commercial property involves many steps, from hiring an appraiser to successfully creating a plan to sell your commercial property. Many people think that it is easier to sell a home than a commercial property. While it is true that selling commercial real estate is not easy these days, it is not impossible. If you put in a little time and effort, you can successfully make a sale without a lot of effort.
Steps in Selling a Commercial Property
Step 1: Hire a Surveyor
The first step in selling an independent commercial property is to hire a licensed surveyor. A licensed surveyor will check the overall condition of the commercial building and determine what repairs need to be made before the commercial building is put on the market.
- An independent surveyor will thoroughly examine your property and determine its value.
- The value is determined by the services offered, location, risk, and price of other recently sold properties.
- The cost of hiring an appraiser varies, but on average, you should expect to pay just over $300.
- The appraisal will determine the selling value of the business premises.
Step 2: Repairs
Once you have a certified surveyor, make the recommended repairs. If more than one repair is recommended, you will need to rank them.
If a repair is recommended but not necessary, decide if it’s worth spending the extra money on the repair. Remember: If you can’t do the repairs yourself, you need to hire a professional. Depending on the type of repairs needed, hiring a professional contractor can easily cost thousands of dollars.
Step 3: Prepare the property for showing.
The property has been appraised, and the purchase price has been determined. It’s time to prepare it for sale. The first task is to clean all the corners of the property.
Depending on the size of the property, you may need to hire a professional cleaning company. Don’t forget about the exterior and pay special attention to the landscaping around the building and other areas you want to showcase to potential buyers.
It’s also important to make sure that the property’s lighting is fully functional. When preparing to view a property, check to see what fair housing laws apply in your area. You can do this with the U.S. Department of Housing and Urban Development. Always check federal discrimination laws before showing a property to a potential buyer.
Step 4: Action Plan
Once everything has been prepared as described above, the next step is to develop a good plan to draw attention to the property. You can advertise to family members, in the newspaper, or on the radio – all of these options will help you sell your property in record time.
Step 5: Advertise your property
Finally, it’s time to advertise your property on social media. With social media, you can advertise your property for free on dozens of platforms. You may already be familiar with Facebook, Twitter, and Instagram, but other free sites like LinkedIn, Craigslist, YouTube, and Pinterest. Users of the more advanced social networks can sponsor their ads or advertise them for a fee.
Step 6: Buyer’s Choice
If you don’t mind wasting your property showing it to the wrong buyer, it’s time to start looking for potential buyers. However, you must be careful.
A real estate agent may “ask” a potential buyer. Do you have prior approval from a lender for a property in this price range?” However, as a seller, you should not ask such questions to upset the buyer. Instead of asking questions designed to qualify the buyer for the property, ask questions designed to qualify the buyer.
For example;
- “How do you plan to use the property?”
- “What is the suitability of the property?”
- “What changes, if any, need to be made?”
One can deduce from that conversation that the prospective buyer is reputable and probably has good credit.
Selling a commercial property
After finding a potential buyer for your commercial property, there are several important steps to take. First, hire a real estate attorney to draft a sales contract. A real estate attorney will ensure that the sale complies with all local, state, and federal laws. The attorney will also ensure that your rights as a seller are protected.
Finally, allow enough time between signing the contract and closing the sale. As a result, the prospective buyer has time to obtain financing if necessary. In most cases, 6 to 8 weeks is enough time to close the sale.
What are other Sales Options Available to me?
Working as a commercial real estate agent
A commercial real estate agent is a licensed real estate broker who helps clients buy, sell, or lease commercial real estate. Commercial real estate agents usually have a background in finance or real estate. One of the biggest challenges in selling commercial real estate is the proper valuation of the property. An experienced commercial real estate agent knows the market firsthand.
They know why similar properties are for sale in your area. Through a real state representative, you can set a price that will attract buyers but not reduce the value of your property.
An experienced real estate agent knows the entire selling process and can guide you through the key steps – from planning to closing the deal.
They can also refer you to other professionals, such as real estate agents.
- Real estate lawyers.
- Land surveyors.
- Trademark agents.
- Photographers and videographers.
- Web developers.
- Land surveyors.
- Marketing personnel.
Quick sale to investors
Commercial real estate investors form companies to buy commercial real estate on demand. As a result, commercial real estate buyers must have large amounts of cash to operate their businesses.
Business real estate developers are the right answer for owners who want to learn how to sell a commercial property quickly. If there’s no other way to sell a property, if no buyer is waiting, sale, there is no other way to sell it faster. Commercial investors also buy distressed properties from owners who are unable or unwilling to renovate the building to make it attractive to the average commercial real estate buyer.
How can you find the Right Buyer for your Property?
When compiling a list of potential investors, you need to know something about your clients and their portfolio.
For example, if you have a Grade A office building that needs to be sold quickly, you should approach an investor specializing in Grade A properties. It is unlikely that an investor who specializes in Class C residential properties will be your first choice.
Commercial property investors usually have websites. Search online for “commercial real estate investors [in your city].” You can also access several online resources that provide a comprehensive database of commercial real estate investors and their portfolios for a monthly subscription.
Frequently Asked Questions
What is the process of selling a commercial property?
The process of selling a commercial property starts with an appraiser telling you what your property needs and doesn’t need and ends with a social media campaign to promote your property.
What documents do I need to sell my commercial property?
- Answers to questions about the commercial property standards exemption (CPSE).
- Documents relating to planning and building regulations.
- Asbestos inspections.
- Fire risk assessments.
- Energy efficiency certificates.
About how quickly does it take to get a commercial property sold?
Depending on market factors such as local demand and property prices, it can take from a few weeks to a year or more.
Do I need a notary to sell my commercial property?
Choosing the right notary is essential to ensure a quick and efficient sale of your property. Your notary will help you throughout the process, so feel free to ask any questions you may have.
Which are the costs of the sale of your business premises?
Most estate agents charge 1-3% of the property’s value, but you can make other arrangements.
Bottom Line
Selling a commercial property these days is not as easy as it sounds, and today’s highly competitive market can be a little daunting. However, if you want to ensure that your property sells as you want it to, you should first check that everything is in order and that you have answered all the questions a potential buyer might have.
If you follow our guidelines, you can be sure that the sale will be successful and that the time and effort you invested in your property will be well worth it.
