As experts in the property sector, we have extensive experience in buying and selling commercial properties. So whether you’re a seasoned investor or selling your first property, our guide is here to help with practical steps and tips to make the process as smooth as possible.
What is commercial property?
Commercial properties are spaces used for business operations, including offices, warehouses, retail shops, alongside leisure properties such as restaurants, hotels and bars. We would also include land both with and without planning permission in this category, which is essentially any non residential property.
Define your goals and prep like a pro
Before putting your property on the market, it’s essential to clarify why you’re selling. Whether you are an investor looking to reinvest in something new, or a business owner who has outgrown your current premises, having a clear goal will help you stay focused and negotiate effectively.
Once you’ve got your “why”, it’s time to prepare:
- Obtain an Accurate Appraisal: A professional valuation or marketing report is essential to determine the value of the property. The report will also outline a recommended guide price and the suggested marketing strategy required to maximise realisations from the asset. Over or under pricing can deter buyers, or unnecessarily prolong negotiations
- Organise Essential Documents: Potential buyers need access to key information such as lease agreements, maintenance records and compliance documentation. Having these to hand at the outset will assist buyers during their decision making and show professionalism
- Identify Key Issues: Highlight any unique selling points of the asset, or any issues that a buyer needs to be aware of before making an offer. Clear communication is essential
Budget accurately for potential sales fees
Below are the key costs to consider when selling a commercial property:
- Legal Fees: Conveyancing is a critical part of the sale process, requiring a solicitor to handle title searches and legal paperwork. Solicitor fees can vary and are typically charged as a fixed price or hourly rate. Obtain a quote early to plan accordingly
- Commercial Property Agent Fees: A reliable and experienced agent plays a vital role in selling your property. Their fee is usually a percentage of the final sale price, typically in the region of 1.5-2%
- Marketing Costs: While some agents include marketing costs in their fees, others may charge separately for activities like online listings, brochures, professional photography and promotional materials. Effective marketing ensures your property gets maximum exposure
Find professionals you can trust
Selling commercial property requires a collaborative approach between all parties. Sourcing professionals that are equally dedicated with the correct expertise is key.
- Experienced Agents: A skilled commercial property agent, like Landwood Group, will guide you through the process. We’ll help you with initial strategy advice, deal with the day-to-day marketing of your property, reach the right buyers and handle negotiations like pros
- Legal Experts: Solicitors will deal with the legalities, such as drafting the sale contract, ordering searches and assisting with enquiries. It is key that regular communication between the agent and solicitor is maintained to ensure a smooth transition to exchange of contracts
- Financial Advisers: Accountants or tax professionals can help you navigate tax implications and ensure the sale aligns with your financial goals
Obtain accurate valuation advice from a RICS-Accredited surveyor
We can advise whether we think a formal RICS valuation report or a marketing report is required once we understand your goals. For an accurate assessment of your property’s value, we recommend consulting a surveyor accredited by the Royal Institute of Chartered Surveyors (RICS), such as the Landwood Group.
Your commercial property agent will also undertake the following steps to ensure a smooth sale of the asset to the right buyer:
- Showcase your property effectively
A tailored marketing strategy by your agent will put your listing in front of the right eyes:
- A broad selection of professional, focused and clear photography is essential
- Choose an agent with connections to a broad variety of global buyers. It’s vital your agent understands how to reach the target market, with tailored marketing strategies to showcase your specific asset
- Targeted advertising will generate interest from the right buyers and streamline the process
- Communicate the unique selling points of the asset and or any issues to be aware of
- Qualify your buyers
Before recommending an offer to proceed with, your commercial property agent will vet prospective buyers to ensure they have the funds required for the purchase, or capable of obtaining any finance. Further to this, an agent’s due diligence includes the following:
- Requesting proof of funds or finance
- Considering whether there are any conditions that are attached to the offer
- Anticipated timescales for exchange and completion
- Details of their legal advisers who would be dealing with the transaction
Obtaining this information up front will confirm who the serious buyers are and prevent wasted time further down the line.
Common mistakes to avoid
Now, let’s talk about the pitfalls. Avoid these and you’ll be ahead of the game:
- Overpricing your property. This will deter buyers and have a negative impact on marketing
- Ignoring maintenance issues. Small problems can look like red flags to potential buyers. Ensure you fix them before listing
- Going it alone. Selling commercial property without expert guidance is taking an unnecessary risk
Our Expertise
At Landwood Group, we specialise in selling a wide range of properties, with commercial real estate at the core of what we do. Our success is built on the extensive expertise of our team and our agency sales continue to thrive.
We deliver results that speak for themselves.
We recently facilitated the successful sale of a parcel of land with lapsed planning permission in Preston City Centre. We provided initial strategy and marketing advice, dealt with the marketing of the property and achieved completion within eight weeks of the offer being accepted by regular communication with legal advisers.
We also recently sold two boutique retail premises in the Northern Quarter of Manchester City Centre. Both the units were let and we completed a successful sale to an investor after undertaking targeted marketing to reach the right buyer.
Ready to Make Your Move?
Selling your commercial property doesn’t have to be overwhelming or stressful. With expert guidance and a clear strategy, Landwood Group will ensure the process is as seamless as possible.
Curious about what your property’s worth? Or just want to chat about your options? Get in touch with Amy Selfe and the team on:
Email: agency@landwoodgroup.com
Phone: 0161 967 0122
