The residential property market and the commercial property market are two entirely different beasts. There are significant differences when it comes to the legalities involved in these transactions, the demand for such properties, the market situation and so on.
In the UK, as elsewhere, there is a housing shortage that seems to be all but perpetual at this point. Houses, even if not in stellar condition, will always have some value. Commercial properties can be quite different and are subject to a wide range of variables.
If you need to sell property fast in the commercial sector, what do you need to know?
Commercial Property
Demand for commercial property is contingent on many factors, such as the overall economy. Other aspects, such as employment and gross domestic product, also play a role. In general, when we see an increase in GDP, along with lower employment figures, this indicates an increase in demand for such properties.
The commercial sector has taken a beating, as it were, in recent years. The global crash of 2008 led to decreases in property value as drastic as 50%. Lenders and building societies were, reasonably, hesitant to take the risk in terms of funding commercial developments and investments. The recent pandemic has also taken its toll on the commercial sector, as nearly every facet of our economy was affected.
However, there is good news: according to the Royal Institute of Chartered Surveyors (RICS), the commercial sector is quite resilient and we are seeing healthy demand. This is especially true for properties suited to industrial purposes, as well as those situated in city centres (e.g. office spaces or potential office spaces).
If you need to sell a commercial property, there is a market – and you can find a buyer, even if you need to move on an accelerated timeline.
How to Sell a Property Fast In the Commercial Sector
Owners of commercial properties may find themselves in a situation in which they need to sell fast. This may be a result of:
- Financial challenges
- The need to pay off debt
- The wish to retire and part ways with your business
- Having negative equity
- Finding commercial business rates too high to be sustainable
Whatever the case, time may be of the essence. Certainly achieving a fair, suitable price is also (and always) important. That said, there are a few methods you can use to sell:
Estate Agent
If you want to sell a property fast… this may not be your best option. It can take between three and six months to complete a transaction with an estate agent. To start, you will need to ensure that your property is ready for potential buyers to view (making any repairs and upgrades deemed necessary), and you will also have to gather key documentation, such as planning permissions, business rate details, commercial energy performance certificate and more.
You will also be responsible for your estate agent fees, as well as potential capital gains taxes, mortgage arrangement fees, mortgage redemption fees, solicitors’ fees, removals costs and so on.
Auction
An auction may be a slightly shorter process when it comes to selling your commercial property. However, you should be aware that you will likely need to pay large fees – and a sale is not guaranteed. Even if you do sell, you may have to accept a lower (or even minimum) bid.
Cash Property Buyer
Cash property buyers can allow you to sell property fast – even if it is in the commercial sector. Just as in the residential industry, top companies can deliver up to 85% of market value.
When working with such a company, you will benefit from their extensive experience in the commercial property field, as well as expert legal, business, surveying and buying services. Your experience will be streamlined and costs are truly and tightly contained, allowing you to use your proceeds to fund your next steps, whether that’s a new business, a new investment… or well-deserved retirement!
If you need to sell property fast, consider the advantages of working with a reputable cash buyer. You can overcome the challenges related to a conventional process – not to mention the expense – and realise your goals on a highly expedited timeline.
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