Buying or selling commercial property can be a long and stressful process – but it doesn’t have to be. Preparation is the key to ensuring a smooth transaction.
Below are my top tips to consider when preparing your commercial property for sale, or when making a purchase.
- Due diligence can be a laborious process which will often delay the negotiating of key points relating to the proposed transaction. It will save a lot of time if you locate all relevant documentation relating to the property prior to negotiations. Such documentation includes, for example, a copy of any lease agreement, any consents and building regulations.
- Knowing the general terms of the documentation that you have located under number 1 above will help the transaction proceed smoothly, and will highlight any steps that might need to be taken before the sale can complete. For example, if you are assigning or underletting, certain steps will need to be followed with the landlord. It may be beneficial and time-saving to speak to the landlord to highlight your intentions to sell.
- Key to ensuring a speedy sale of your property is to be realistic about your price. A drop in price now may save months of waiting and may be offset by the savings made in mortgage payments.
- As a buyer, it is important to focus on your needs rather than what you want.
- Have a budget and don’t forget to take into account any investment that might be needed in the property.
- Ensure that the property is the right size for your business. Is it large enough to accommodate for all of your needs – staff, storage, vehicles etc? Is there sufficient space to expand the property, should you need to?
- The location of the property is key. Things that you might need to consider are: Do you need to be close to your suppliers? How long will it take your employees to travel to work? Is the property in the correct location for your business needs
- Get your mortgage agreed in principle. Not only does this shows that you are a genuine buyer, but it will also speed up the transaction too.