When it comes to selling your commercial property, success hinges on adopting the right strategy. The commercial property market presents unique challenges compared to selling residential properties, primarily due to factors like location, size, and the specific pool of potential buyers.
In this article on ways to sell your commercial property, we will explore various effective strategies that can help you achieve your desired price and minimize legal complexities. Whether you’re considering hiring a real estate agent, targeting businesses looking to expand, or selling through auctions, we’ve got you covered. Additionally, you can discover the role of a business broker and how they can play a crucial part in your commercial property sales journey.
Here are several approaches you can consider:
Hiring a Real Estate Agent
A real estate agent is the most common way for a buyer to find your commercial property. They will be able to advertise the property and approach would-be buyers.
The most significant benefit of working with the right and best real estate agent when selling commercial property is that they have plenty of experience in this field. They understand how to present your property and know where to best place it on the market to increase its chances of being purchased quickly.
If you do decide to employ a professional, make sure that you meet with them before listing the commercial property so that they can help advise you on how best to prepare it for sale. You should also agree on paper an asking price before listing it, as this will ensure there are no disputes in the future.
This strategy can work out best if you are not in a rush to sell your property. The length of time it takes to sell will depend on the property’s location, price, and condition. This may be a good option as they can use their network of clients to find possible buyers. However, agents charge a commission, so make sure you ask about this before hiring them.
Eliminating Your Competition
If you do not want to wait for a buyer to come along, you can approach other businesses looking to expand or open new premises. This strategy does have some downsides associated with it, as you will not be able to get a large amount for the sale, and whoever ends up buying it may later sell it at a cheaper rate than what you originally paid.
In addition, if they go bust, then there is no guarantee that they will return your investment in full. Try working out whether this cost is worth the potential profit before carrying on with this strategy.
Another disadvantage of using this method is the length of time involved. It could take many months before someone decides to buy your building, so you need patience while trying to sell it this way.
Using a Repo Company
If you cannot wait to sell your building and need the cash fast, then getting rid of it through a repossession company could be an option for you. Suppose no buyer is willing to purchase your property in its current state. In that case, selling directly to a repossession company could be the quickest and easiest way to get money from it, even if they offer you less than what it is worth on the market.
A good tip when choosing a repo company is to steer clear of those based overseas, as they may not pay up should they fall into financial difficulties shortly after buying your building.
The main disadvantage of selling through a repossession company is that once their contract is signed and you have handed them the keys, you cannot alter any of the terms or conditions. For instance, if you had wanted a more extended period for it to be taken over before they could resell it, then this may not be possible with a repossession company. Once their contract is signed, that is your agreement, and if you try to change anything, they will just take the building back.
Selling Through Auctions
Auctions can, at times, be very successful in completing sales. There are different types of auctions, including private and public auctions, where people can buy directly off the plan.
It’s also crucial that if you decide on using a public auction, then there needs to be full disclosure by all parties involved, and proof of funds for the highest bidder must always be obtained before accepting the bid. This is called a buyer’s premium, and it can be as high as 18% of the asking price.
The good thing about a public auction is that all bidders will know that other buyers are interested in purchasing your property, so there is little chance of losing out on potential offers.
Here are a few things to remember before you participate in an auction:
- Ensure that a qualified valuer has professionally valued your property before entering into any agreements.
- If you decide to use an auctioneer, they may charge you a commission for their services.
- Make sure you have agreed to the terms or fees attached to this service; otherwise, it could end up being more than expected.
Selling Through Property Listings
If you decide to sell commercially on your own, then list it on the internet and in newspapers to highlight your property for sale. You may choose from a wide range of websites that offer free or paid listings, so get as many views as possible from interested buyers.
When putting up your ads, ensure they are eye-catching and include all relevant details such as price, size, and condition. If you are selling online, make sure there is a contact number provided so potential buyers can ask questions about the building before making an appointment to view it.
Selling Through FSBO (For Sale By Owner) Platforms
Many websites offer to connect you with people looking for a commercial property for sale, including those For Sale By Owner (FSBO). When using this option, the FSBO website will provide a platform for anyone selling privately to communicate with potential buyers. You can post any details about your property, upload photos, negotiate on price, and then take offers from buyers interested in purchasing your commercial property.
Contacting a Company That Offers to Buy Existing Properties and Renovate Them
There are companies that focus on purchasing existing properties, renovating them, and then reselling them for higher prices. Such companies have become very popular due to their innovative business model, which has helped many people turn a losing investment into a good profit. The main advantage of working with such companies is that they will take over your property, renovate it, add value, and then resell it. This will ensure you get rid of an unwanted building quickly without the hassle of having to market it yourself or go through various legal procedures.
With so many options to market your commercial property, it can be hard to know where you should spend the most time and effort. We hope that this article has given you some ideas on how you can sell your commercial property and will help make your decision a little easier.
