How long does it take to sell a commercial property?
Selling a commercial property can be a complex process and will generally vary in the time it takes to complete. NFC Homes are experts in the process of commercial property sales and are here to help. We’ve put together a guide on how to prepare your commercial property for sale, what you need to know about the process, what will take up the most time in a sale, and how to mitigate this.
Preparing your commercial property to sell
Just like selling a residential property, you should ensure that the commercial property is presentable for prospective buyers. You can do this by clearing out clutter, tidying up decorations, and completing any necessary repairs before viewings and valuations. Ensure that the appeal is broad because many commercial properties are taken on by entirely different businesses. You should be able to provide all basic property details (this might include information about the location, suitability for business types, and price of upkeep) and we recommend putting together a buyer pack with more detail.
This should include:
• Energy performance certificates
• Any planning permissions
• Use classes and lawful user certificates
• An asbestos survey for properties built before 2000
• Information on business rates, stamp duty land tax, and other costs
What you need to know about appointing an agent for commercial property sales
For commercial property sales, it’s generally recommended for sellers to appoint a professional estate agent with a speciality in commercial property to assist with the sale. You should seek out an agent with expertise in the type of property you are selling, and you should consider choosing one with experience in the sector, too.
As this is a specialist industry, an accredited agent could make a huge difference to your sale proceeds.
How much does it cost to sell commercial property?
There are a number of factors that will influence how much it takes to sell your property, but these are the most likely costs to be accrued:
• Commercial agent fees. While agents ensure a smoother process, they charge their own fees and take a percentage of the sale price as commission.
• Solicitor fees. There are a number of required legal considerations when selling commercial property (including conveyancing – the transfer of ownership) that must be done by a qualified solicitor.
• Mortgage redemption and arrangement fees.
• Removal costs of furniture and equipment.
• Capital gains tax on sale profit.
What are the three pricing options and what do they mean for sale time?
Many estate agents will offer you three guide numbers for the sale.
Pricing Option 1
This will be a high number, but it will also take the longest time to generate a sale, if indeed it ever does. Achieving this pricing option is ideal but it will also be a harder to achieve.
Pricing Option 2
This, on the other hand, is a “will probably sell between six months and a year” number. This is a well-researched figure that considers the location’s current market rate. It is reasonable but it is optimistic.
Pricing Option 3
Finally, there is the fire option. This will be the least attractive price for an owner to hear but it will also a better guarantee of a sale within three to six months. It may also encourage a bidding war, driving up the price. e insulation and installing LED bulbs. These should lower power bills by a significant margin.
The things that will take the most time and how to mitigate them
One big delay to any commercial property sale is documentation. If you can get all the relevant documentation to your agent and solicitor then it will streamline the entire process and reduce the time you’re waiting for your property to sell.
The most important documentation you should have ready quickly is:
• Energy performance certificate (including energy rating and CO2 consumption)
• Planning and building regulations document (including planning permission and building regulation certificates)
• Fire risk assessment
• Replies to Commercial Property Standard Enquiries
• Asbestos surveys for properties built before 2000
The sale process for commercial properties
1. A contract is drafted
2. If there is a mortgage, a redemption statement is made
3. Documentation is enquired
4. Contracts are exchanged
5. Sale is completed and the payment made
About NFC Homes
NFC Homes is a residential and commercial property development, housebuilding, and construction group based in London and operating nationally. Over the last fifteen years, we have successfully delivered over fifteen hundred new homes and commercial developments. Using our in-house planning, legal, surveying, and construction expertise, NFC Homes is able to deliver the best possible service to our clients. Our planning track record is excellent, and we are proud to have a reputation for delivering construction projects on time, on budget, and of high quality. For more information about selling a commercial property, get in touch with NFC Homes today to speak to one of our dedicated customer service team who will be able to refer you to our premium services.