Commercial buildings can be a great investment for business owners, property owners, and entrepreneurs. However, selling a commercial building can be a difficult process if you don’t know what you’re doing. In this blog post, we will discuss the steps that you need to take to sell your commercial building quickly and efficiently. By following our guide, you will be able to get the best price for your property and avoid any common pitfalls that occur during selling your own commercial property!
If you’re thinking about selling building, it can be helpful to work with a real estate broker or agent. A skilled professional will help you price your property correctly, attract potential buyers, and negotiate the sale.
Key Takeaways
- Before listing your commercial property for sale, you’ll want to get an appraisal from a local real estate professional so that potential buyers will know the value of your building.
- Researching similar properties that have recently sold or are currently for sale will help you determine what price range would be appropriate for your building.
- Develop a marketing plan that will attract potential buyers.
Table of Contents
Selling Your Commercial Property: What’s Involved in the Process?
1. Work with a Commercial Real Estate Broker
Selling a commercial building can be a stressful experience. You need to find a buyer, and then you need to get the building ready for sale. It’s much easier to work with a Commercial Real Estate Broker to sell your commercial building.
The first thing you’ll want to do is hire a Commercial Real Estate Broker who specializes in selling commercial buildings. They will help you find the right buyer for your building, negotiate the sale price, and handle all of the paperwork for you.
With investment real estate, selling a commercial building is not something that most people have experience doing on their own. The process can be confusing and stressful if you don’t know what steps are involved or how to find an appropriate buyer for your property.
A Commercial Real Estate Broker will take care of all of that so that you don’t have to worry about it while they handle everything else.
The Pros of Working with a Broker
A good broker can help you navigate the complex world of selling commercial real estate, which can be intimidating even for veteran business owners. They’ll know about the various types of buyers out there, how to reach each type and how to convince them that your building is the perfect fit for their needs. They also have access to all kinds of resources that can help you make informed decisions about how to price your building or what upgrades are worth it. And they can do all this while handling all the heavy lifting—you don’t have to worry about doing any of the legwork yourself.
The Cons of Working with a Broker
One of the biggest drawbacks to working with a broker is that they will often charge a commission on the sale. In addition, they will take a percentage of the listing fee as well. This can be anywhere from 5% to 10% of the total money that you receive for your property.
Another downside to working with a broker is that they will not always have your best interests at heart. Instead, their main concern is getting paid and closing deals. This means that they may not take into account all of your needs and wants when it comes to properties or prices.
2. Hire an inspector
If you’re in the process of selling a commercial building, one of the best things you can do is hire an inspector to look over the property before it goes on the market. The inspector will be able to tell you what needs to be repaired or replaced and can give you an idea of how much it will cost. This will help potential buyers feel more confident about their purchase and make your listing more attractive.
3. Make all the necessary repairs as suggested by the inspector
When you’re selling a commercial building, it’s important to make sure that it’s in good shape before putting it on the market. You want potential buyers to see your property as a great investment opportunity, not an eyesore they’d have to clean up before they can start making money off of it. That means taking care of any maintenance issues and cosmetic problems before listing your property for sale.
Your inspector’s job is to assess how well-maintained your building is and whether or not it needs any repairs before being sold—and then give you a report on what needs doing so that you can budget accordingly when it comes time to fix things up.
4. Get the services of an appraiser
Before you list your commercial building, it is important to have it appraised. This way, you’ll be able to figure out its current value, which will help you determine how much you can charge for it. The market value of a building depends on several factors: the size of the lot it sits on, the age and condition of the building itself, and how well-located it is within its neighborhood. You can either hire an independent appraiser or ask your real estate agent for recommendations.
5. Prepare the property for the unveiling
Once you have completed all of the necessary renovations, it is time to prepare your commercial building for an unveiling. This is an important step, as it will allow you to show potential buyers what they can expect if they purchase the property.
To prepare your commercial building for the unveiling, make sure that all of the hard work you put into renovating and improving it is on display. Clean up any construction debris and make sure there are no signs of ongoing work on site. If possible, hire a professional photographer who will take pictures of your renovated space and post them to social media for maximum exposure.
6. Take Interior / Exterior Photos
Virtual tours help potential buyers envision what it’s like to live and work in your building. In order to create a virtual tour, you’ll need to take photos of the interior and exterior of your building. You can do this by yourself or hire someone else to do it for you.
Drone Footage
If you’re trying to sell a commercial building, you need to show people what’s inside and outside of it. That’s where photos taken from a drone can come in handy. The drone will give you an aerial view that shows off the entire property in a way that no other camera can.
3D Virtual Tour
The best way to sell a commercial building is with a 3D virtual tour. With software, you can take interior and exterior photos of your property and create a 3D virtual tour that will help potential buyers see what they’re getting before they even make an offer.
7. Put Together a Marketing Flyer
If you want to sell your commercial building, you need to market it properly.
Start by putting together an attractive marketing flyer. The flyer should explain what your building is and what makes it unique. It should also include some photos of the inside of the building and its exterior. If you don’t have good photos, take some new ones with your phone or borrow some from a friend who owns a professional camera.
Your flyer should also include details about the location of your building, including its city, state, zip code, and distance from major landmarks like highways or airports. You might also want to include information about nearby restaurants, stores, and other amenities that might be appealing to potential tenants; even if these are not included on your property listing online, they will help potential buyers envision how they might use a particular space if they were interested in buying it for themselves!
8. List the Property Online
Listing a commercial building is one of the most important steps in selling it. If you’re looking to sell a commercial building, there are a few different ways to go about it.
CREXi / Ten-X / Craigslist
Listing your commercial property online is one of the best ways to get it in front of a lot of potential buyers.
CREXi, Ten-X, and Craigslist are all great options that can help you sell your commercial building quickly and easily.
These sites allow you to post pictures, videos, and descriptions of the property, as well as details about its location and price. This will help potential buyers see what they’re getting into before they make an offer on the property.
Create a Property Website
When you’re ready to sell, the best way to sell commercial real estate the first step is to create a strong property website. This is your chance to showcase your building and all it has to offer potential buyers. Make sure your website includes high-quality images, detailed descriptions, and accurate contact information. You should also include any important statistics that can help potential buyers understand why they need to buy your building.
By taking the time to create a strong property website, you’ll be one step closer to making a successful sale.
9. Share the property availability with your network
You’ve got a commercial building that you’re ready to sell, and you want to make sure you get the best price possible. Here’s how to do it:
In-person
Talk to people in person. You don’t need to be pushy or overbearing; just tell them what you’ve got and ask if they know anyone who’d be interested.
You’ll probably find that the first few people you talk with already know someone who might be interested in buying your property, but if not, ask for their contact information so that you can follow up with them later.
Online
You can also advertise your property online. You’ll probably get more responses this way, but they’re less likely to be from people who are actually interested in buying. If you do decide to use an online forum or website, make sure that it’s a reputable one that won’t charge you any fees; otherwise, you’ll be losing money instead of making any. You could also try loopnet.
10. Notify Your Chamber of Commerce and Professional Associations
If you are planning to sell a commercial building, it is important to notify the local chamber of commerce and any professional associations that may be relevant to your business. These groups can help you get the word out about your building and its potential sale, which can help attract more buyers.
11. Finalizing the Sale of A Commercial Property
The final step in selling a commercial property is to close on the deal. If you have chosen a buyer who has all of the necessary documentation and a good track record, making that happen should be easy.
After you have chosen a buyer, your next step is to negotiate with them. You will want to make sure that you get as much money as possible for your building while still making sure that they are comfortable with their purchase. This can take time and patience, but doing it right will save you money in the long run!
Once you’ve negotiated an agreement with your buyer, you’ll need to sign over ownership of the property and collect any other forms necessary from them before closing can occur. The process for this will vary depending on where you live, so check with your local government or real estate agent for more information about how it works in your area
Types of Buyers of Commercial Properties
There are typically three groups of people who purchase commercial real estate:
- Individuals looking to put their money to work for them in the form of dividends or interest.
- Investors who hope to profit from a rise in the market by selling their holdings when prices are high.
- Customers, who are in the market for a website for their company.
Cash Property Buyers
When you’re ready to sell a commercial building, you might think that you can just list it for sale and wait for the right buyer to come along. However, if you don’t know what to look for in a buyer, you could end up wasting time with people who won’t be interested in your property.
Here are some guidelines that can help you find the right property cash buyer:
How to Find the Right Property Cash Buyer?
Get a list of companies that buy commercial properties. You can do this by searching online or asking your real estate agent for recommendations. Once you have a list of potential buyers, contact them and ask them how they determine the value of a property and whether they would be interested in buying yours. If you don’t want to sell your building at its current value, then specify what price range would be acceptable to you when speaking with these companies.
Pros of Selling to a Property Cash Buyer
Selling your commercial building to a property cash buyer is an excellent way to get top dollar for your property.
Here are some of the pros of selling to a property cash buyer:
1. You won’t have to worry about finding a buyer who can afford to buy your building.
Property cash buyers are in the business of buying properties, so they’re always looking for deals on commercial buildings like yours.
2. You’ll be able to get top dollar for your commercial building because we know exactly what it’s worth and we’re willing to pay that price!
Most people don’t know how much their properties are worth because they don’t know where else they could go if they waited too long before selling them off—but we do because we’re always looking for places like yours.
Cons of Selling to a Commercial Real Estate Investor
Implied Probability of a Market Crash
The possibility that the value of a property will decrease due to changes in the market is known as “market risk.” This encompasses fluctuations in rent, interest, property taxes, and occupancy. Since these shifts often occur rapidly or unexpectedly, investors need to make every effort to plan for and mitigate their effects.
Confidence in the Community
Last but not least, people go to commercial spaces, especially retail shopping centers, to socialize, celebrate, and unwind. Therefore, they are also locations where one might get hurt while trying to do so. They could be minor, like a slip and fall, or they could be major, like a fire. In either case, they are a problem for the person or business that owns the asset.
The risk/reward profile of any given transaction needs to be evaluated and adjusted so that the investor feels secure.
Pros of Selling By Owner
There are several advantages to selling a commercial property by owner. First, the process typically is faster than going through a real estate agent because there is no middleman involved. Second, sellers don’t have to pay any commissions. Third, sellers retain all of the profits from the sale.
Cons of Selling By Owner
There are also several disadvantages to selling a commercial property by owner. First, without an agent, the seller has no one to help them market their property. Second, sellers need to be willing and able to do all of the legwork involved in finding a buyer or tenants themselves. Third, sellers might not receive as much money for their property as they would if they went through a real estate agent.
Common Mistakes to Avoid When Selling Your Commercial Property
Buying a commercial property is a big investment, and selling it can be even more stressful. Here are a few common mistakes to avoid when selling your commercial property:
1. Selling property on your own or with unverified brokers
It’s always a good idea to work with a real estate broker when selling your commercial property. A professional broker can help you get a better price for your property, and they can also assist with the negotiations and paperwork involved in the sale. If you choose to sell on your own, make sure you hire an expert who is licensed to sell commercial real estate sales.
2. Underestimate the importance of preparing contracts and other documents
When you sign a contract for the sale of your commercial property, make sure it is as thorough and complete as possible. Your lawyer or real estate broker can help you write a solid contract that covers all the bases. You should also be sure to have all the necessary paperwork ready before your first meeting with potential buyers so that any issues can be addressed immediately.
3. Deal with a partner who isn’t willing to help you with all aspects of sales
A good real estate partner will help you with everything, including advertising the property and showing it to prospective buyers. You should not be expected to do anything except provide your input on how best to market and sell your commercial building.
Selling Your Own Commercial Property FAQs
The following are some of the most frequently asked questions about selling your own commercial property:
How Much Does it Cost to Sell Commercial Property?
Appraisal fees, inspection and repair fees, agent commission fees, solicitor fees, transfer tax, and moving costs are just some of the expenses a seller will face when selling commercial property. The total cost of these expenses would be different for every property and service provider.
Who are off-market buyers?
There are two possible meanings of “off market” in commercial real estate transactions: the property is not for sale, or it is for sale but not listed. The term “off market” is used to describe real estate that has not been listed on the Multiple Listing Service.
All available properties are not included in the MLS (Multiple Listing Service). According to the 2021 Home Buyer and Seller Generational Trends Report from the National Association of Realtors (NAR), 11% of all sellers find their buyers without listing their property. Additionally, areas with a highly competitive housing market tend to have a greater number of sales that occur outside of public view.
How do you determine the selling price of a commercial building?
When you’re selling a commercial building, it’s important to know how much it’s worth.
The best way to sell commercial property or to determine the value of a commercial property is by hiring a real estate agent who has experience in the area and knows what the average price of similar properties is in your area.
The agent will also keep you informed about recent sales, so you can see how your property compares with others in the neighborhood.
How long does a building commercial property sale take?
Anywhere from seventy-five to ninety days is typical to sell a commercial real estate property deal to close. However, this schedule is subject to change based on factors like the length of time required to complete necessary tasks like a pro forma analysis, appraisals, and title approval.
Remember to consult a professional real estate attorney before signing on the dotted line, a real estate broker could give you references.
FAQs
What are the basic costs involved in selling a commercial property?
The main costs include appraisal fees, inspection and repair expenses, agent commission (typically 5-10%), solicitor fees, transfer tax, and moving costs. The exact total varies by property and service providers.
How long does it typically take to sell a commercial property?
The average commercial property sale takes 75-90 days from listing to closing, though this timeline can vary depending on factors like property analysis, appraisals, and title approval processes.
Should I sell my commercial property on my own or use a broker?
While selling on your own saves commission fees, using a broker typically provides better market exposure, professional pricing guidance, and negotiation expertise. Brokers also handle complex paperwork and marketing requirements.
What documentation should I prepare before selling my commercial property?
Key documents include property appraisal reports, recent inspection records, current lease agreements, maintenance records, property tax information, and detailed financial statements.
What’s the best way to market a commercial property?
Effective marketing typically combines multiple channels: online listings (CREXi, Ten-X), professional photography/virtual tours, property website, networking through Chamber of Commerce, and reaching out to professional associations in your industry.
Conclusion
We hope that this blog post has provided you with the information that you need to successfully sell your commercial building. Remember to follow our tips and advice, and you will be able to avoid any common mistakes. If you have any questions or would like more information, please call us or schedule a free consultation. We are always happy to help our clients get the best results!
