Selling a Commercial Property Privately
“Selling a Commercial Property Privately”
If you want to:
- stay away from Agent Commissions
- know more on how a Commercial Property is SOLD
- decide if a private sale is right for you,
READ THIS GUIDE
A Commercial Property, usually, gets most buyer attention very soon after it is listed, so use this information to prepare as much as possible to capitalise on this vital period.
What you will save by private sale is the Agent’s commission. Depending on the sale price and area, these can generally range from 2.2% to 3.3%. If the median Commercial Property price was around $1,500,000, then private sale brings a MINIMUM of $33,000. SAVED
You, the owner, know your property best. The surrounding area and attractions, community insights, facilities and infrastructure are all second nature and you are the best person to talk about them to interested buyers. This also builds confidence and familiarity with a keen buyer, directly talking to an owner. You cannot expect an Agent to be as committed; he has other properties to sell beside yours.
With an Agent, you are a passenger on their train, one with many carriages. In a private sale, you drive the locomotive and get help where and when you need it. Timing of inspections and their security, gaining all interested buyer information, type and method of advertising and more, all remain in your hands, not a third party’s.
Besides looking at the “Getting a Property Sale Price” section, be aware of these factors when looking at the value of your Commercial Property.
- Expenses. These can be researched from Property Managers you use or know. For a residential block, for instance, the number of apartments is a base unit to seek, total expenses being divided by this number. A similar metric can be applied to square metres in the property. Properties such as factories, warehouses and parking stations can give similar figures dependent on the income earning unit in them.
- Taxes and Statutory Charges. State And Government taxes, Council rates and charges and stamp duty all feed into the calculation of value and, therefore, selling price.
As elsewhere, PropertyForSaleByOwner.com.au can help on these matters and refer our Users to Professional Valuers in your area, if available, experienced in commercial valuing. They take into account all the factors mentioned and combine, with other issues mentioned elsewhere, into a realistic value for your Commercial Property.
If you have not engaged a lawyer or professional to arrange contracts and settlement, it is advisable to do so now. Unless you are experienced and confident of your capacity in property legal issues, you will need a lawyer to ensure all requirements are met for the sale. The complexity of Commercial Property sales is such that, regardless, using a lawyer is almost a mandatory step,
Selling your commercial property privately means that you must have the widest promotion of the commercial property. These days, that means Online and here PropertyForSaleByOwner.com.au will get your property posted on the Australia’s Largest Commercial Real Estate and best websites, such as Realcommercial.com.au and Commercialrealestate.com.au, to get to buyers looking for a Commercial Property like yours. We will help with advice on the listing, Professional Photographs and Description, amongst other tips. We have experienced and qualified staffs that are able to assist you in this.
Other Tips on Selling Commercial Property
PropertyForSaleByOwner.com.au can help with Professional Photo Signboards. These, for a commercial Property, should be of high professional standard to attract serious buyers and confirm the importance of your property as a potential investment. Professional Photo Signboards, placed in foyers and visible to passing pedestrian traffic, can enhance the impact of online advertising.
Buyers often decide on a property when they first see it from the footpath. The private seller needs to do all they can to make this a good impression. A Commercial Property that is painted, clean, super tidy and with minor maintenance complete will achieve this. PropertyForSaleByOwner.com.au can give help for you to do this, but here are some points to consider,
- Prepare all supporting documents concerned with the operation of the property, so a prospective buyer has this information when they inspect
- Paint the exterior where it needs it,
- Mow the lawns and clean up gardens, common and public areas and entrances
- Obvious repairs, such as lighting or broken paving, should be fixed before inspections.
- Clean all windows, inside and out.
- Remove rubbish and clutter.
- Have your interiors clean and bright, again with no clutter to detract from a good impression. Again, all minor repairs should be completed before inspections.
Examine your Commercial Property as if you were the buyer. Does it look like it has tenants who are pleased with the building; do the lifts work properly; is the concierge staffs bright and helpful? These and other small details can help create a positive atmosphere and assist negotiations.
Remember, the buyer may like your Commercial Property as much as you do so use this friendly atmosphere to lead to a sensible conclusion on agreed sale price, without an Agent meddling between you both. In Commercial negotiation, especially, these discussions should be “Face to Face” and started by the seller. Prepare for questions, such as comparisons with similar properties.
Have in mind your aims – the lowest price acceptable and how quickly you want to sell. Then, isolate concerns that keep from getting there with the buyer, without getting stuck on one issue. Often, best to see if you can come back to this point later, and move on to other matters that can be agreed quickly. Compromise is always going to be necessary, usually at a level that satisfies the buyer and also gets a price that delivers you the return that is appropriate in the market conditions.
Don’t set your opening price too low, as negotiation will probably bring it down further – give yourself a buffer to move down, but still get the price you will be satisfied with. Find out what the buyer wants and then move toward that need, without giving up your aims.
Be honest and acknowledge the need of the buyer, even if you can’t meet them. This may open the way to further discussion and concession on their part. Leave matters open if there is no agreement – often a good night’s sleep may bring the buyer back with a more accepting attitude.
Always have your own aims clear, and be flexible as you move toward agreement on them.
Completing the Sale
In commercial negotiations, when agreement is reached, confirm this with written summary prior to the Contract of Sale being drawn up. It will further commit the buyer and allow them to offer any minor changes from their understanding of the final meeting.
Make it easy for the buyer to pay their deposit by having the solicitor or conveyancer ready to receive it into their Trust Account; this confirms to the buyer your preparation and gives confidence. Keep in touch with the buyer to ensure they know settlement time and talk to PropertyForSaleByOwner.com.au for help.
Unless the buyer is in the unlikely position to pay in cash, you need to give them time to arrange or finalise finance for the purchase. It shows the prospective buyer they must not waste time. If they cannot settle, then you have not lost time or enquiries and can go on with your sale activities, without pause.
When the settlement cheque is given to you and the sale has been done – you will have the great satisfaction of knowing you did it, without an Agent and without their Commission.