Can’t sell commercial property
Published by Property Saviour
The UK's No.1 Fast House Sale Company
January 1, 2020 - Read time: 3 minutes
If you have a commercial property to sell, there are numerous factors to be aware of. You will need to have an understanding of the legislation surrounding commercial property sales, local property values and an awareness of what commercial property buyers are looking for from sellers.
If you are struggling to sell your commercial property, this guide will explore the reasons why it’s being left unsold on the market, or why you may not see a successful sale if you do work with estate agents or commercial property selling agents.
Firstly, we’ll take a look at how to market a commercial property.
How do you market a commercial property?
You can market the property with an estate agent of your choice, but it is important to make sure that your agent understands exactly what you are looking to achieve, – and this is one of the many problems sellers face when marketing a business online or through local agents
It can be useful to provide your estate agent with the initial relevant information to assist in marketing your property. Your agent will normally add to this with detailed descriptions and photographs. However, bad photographs and inaccurate descriptions are unlikely to interest potential buyers, and a fast sale for your business or property could prove to be difficult.
Are there expensive selling costs?
Whether you are planning to sell a business, an office or a warehouse, there are costs you must consider if you are looking to sell with an estate agent.
- Commercial Agent Fees – commercial agents are in competition with each other, so it is worth discussing this with the agent before instructing them to sell your property (agents tend not to change fees much)
- Solicitor fees – solicitors usually carry out conveyancing for a fixed fee, but you may be able to negotiate to a lower fee, so it is worth getting a number of quotes.
- Mortgage redemption fee – if you have a mortgage on your commercial property and you pay this off early, you may receive a redemption fee.
- Capital gains tax – you should speak to a financial advisor at Property Saviour if you are selling an investment property as you might be liable to pay capital gains tax.
- Mortgage arrangement fees – if you cannot transfer your existing mortgage for any reason, you may be liable to pay mortgage arrangement fees for any new mortgage you require.
- Removal costs – if you have equipment, furniture or other assets in your commercial property and these are not part of the sale, you will need to arrange for these to be removed at your costs.
These costs add up fast, and if left in the wrong hands, you could end up wasting a lot of money and walking away with no sale, or having your business, building, or properties on the market for months.
If you need more information, read another article from Property Saviour – we are keen to keep you updated and produce a wealth of informative content and tips on our website.
How is my property valued by estate agents?
The amount your commercial property is worth is subject to a range of factors, including:
- The price of recently sold properties in the surrounding areas – if your commercial business or the property you want to sell is in a run down area, or an area that’s unappealing to potential buyers, an investor, or new independent business owners who are buying a property for the first time, not only is it going to be left unsold, it will also be valued at a similar cost to the buildings that surround it.
- Market trends – With Brexit taking over the news right now, a buyer may not be interested in your commercial property until there is more clarity on the market share, and the growth or decline that the market may face. A buyer wants to get the lowest possible offer, so if you want to sell now – and fast – you may see there’s little interest from people or buyers.
- Availability of similar properties – Also, if the competition is fierce, and there are a lot of similar commercial properties already on the market that aren’t selling in the same location – what are the chances of your property selling either?
- The condition of your property – If there are issues with the condition of your commercial property, estate agents won’t make it gleam for you unfortunately. In order to get a higher price, you’d have to fix the damage, spending more money on the building to make it look appealing to a buyer, and succeed in selling.
How do I get rid of a commercial property that won’t sell?
Selling a commercial property is much more difficult than selling a residential property as the buyer usually has a different motive than buyers looking to buy or rent a house.
Some sellers have even asked us if it’s legal to live in a commercial property or on the land, but this can cause real problems and leave you with very limited options.
If a building is still a registered commercial property, you may need to obtain planning permission before converting it into a residential space. This is definitely something to check before buying, as sometimes commercial property for sale already has planning permission for a conversion to residential.
In order to obtain planning permission you will need to apply to your council’s local planning authority (LPA).
Bear in mind that if you go ahead with any building work without having permission, you may find yourself facing the financial and legal repercussions of a planning breach – something to be avoided.
Make sure you know exactly what the law stipulates with regard to your property before beginning renovations. You should also ensure that you seek prior approval from your local council before completing any major works, even if you positively determine that no planning permission is necessary. Prior approval for renovation may come with conditions specific to a former commercial property, such as a limited time frame within which to complete all the building works. This depends on the type of commercial property you are converting.
Can I sell my commercial property for cash?
With that in mind, many commercial property sellers skip the traditional method completely – cutting out legal costs, lengthy written contracts, and the time-consuming process that is associated with it.
Instead, in 2020, sellers are moving towards property buying companies, as way to save time, money, and sell their business fast for cash.
As commercial property buyers, here at Property Saviour, we guide you through the details step by step and continue to stay in touch day to day. We have strong values – firmly believing that selling a property, whether commercial or residential should be easy and you as a seller should get the best advice and price possible.
Start by giving us a call to find out about the service we offer as the purchaser of your commercial property. At this stage you aren’t required to complete the sale with us, but hopefully you’ll see we are genuine buyers who want to share your success, and be part of your selling process.
How can we help you sell your commercial property?
If you’re still feeling uncertain, have a read of our articles which feature tips and comments from clients who are currently or have already completed a property sale with us. You can also fill out our enquiry form and leave us your email address so we can drop you a line about our services.
Once you’re feeling confident, we aim to make sure we’re the best buyer for you, as our services include £500 towards your legal fees.
Normally, when selling a property, a buyer can be hesitant, meaning the process of exchanging contracts can take longer than expected. On the other hand, Property Saviour guarantee to put the funds from your property into your bank in up to 21 days.
We’re located in the North West, but you don’t have to live close by to work with us. We work with clients from all around the UK and overseas and never fail to keep in touch. So, if you want sound advice from professional property buyers who won’t keep you waiting months for a quote – get in touch.
Fill out our contact form here or call us at anytime for a free, confidential chat about how we can secure a fast, successful price for your commercial property.