Sell a Commercial Property Fast
The recent economic downturn in the UK has left many commercial property owners in a precarious position. The instability of the market, combined with the recent rise in interest rates, means a good portion of commercial landlords are wanting a swift exit. Whether due to unforeseen financial constraints or the desire to avoid further losses, the need for rapid sales strategies is evident in today’s challenging UK economy.
3 Ways to Sell Commercial Property Fast
There are three main ways to sell a commercial property fast – each with their own advantages and disadvantages. In short these are
1) Using commercial agents
2) Selling the property at auction 👉
3) Selling to a cash buying company
In this article we’ll lay out the advantages and disadvantages of each speedy sale route:
1. Commercial Agents
Local commercial agents are normally RICS (Royal Institute of Chartered Surveyors) qualified and have a great understanding of their local market. Commercial agents are one option for disposing of a commercial property fast. However, we find that they are normally far more motivated for you to retain your asset, rent and manage it through them. A commercial agent’s greatest asset is its bank of commercial landlords. A commercial agent will sell a property, but this can be a slow and potentially costly process. Mostly you see these commercial properties listed on their websites with little external marketing to websites like Realla, Rightmove Commercial or EG PropertyLink. The average time it takes to sell a property via a commercial agent is anywhere from 10-20 weeks, or more.
Advantages:
They will have great contacts
They will understand the market on a granular level
They will have a backup option to rent and manage your property if it doesn’t sell
Disadvantages:
Selling is not their primary motivation
The process is possibly the slowest option
A result is not guaranteed
In conclusion do not dismiss your local commercial property agent as they are normally experienced and capable local property professionals. However, there are faster and far more certain methods of selling your commercial property.
Some of the best known commercial agents include: Savills , Allsops , Knight Frank , Avison Young and Lambert Smith Hampton.
2. Selling at Auction
Offering a commercial property for auction can be an incredibly efficient and strategic decision. Unlike traditional estate agency sales that might be limited to a local audience, commercial property auctions can draw attention from potential buyers all over the UK. It’s essential to select an auction platform that harnesses a vast network of potential investors, ensuring that your property reaches the right audience.
Advantages:
Offers a quick sale solution, often completing within just 28 days.
Garners national attention, tapping into a wide spectrum of potential buyers.
Auctions typically have a higher success rate than traditional estate agent listings.
Certainty of Sale: Once the gavel falls, buyers are legally bound, offering sellers peace of mind.
Encourages competitive bidding, often resulting in the best possible sale price.
Disadvantages:
Initial flexibility in pricing may be required to generate interest.
Auction timelines can be tight, necessitating sellers to be well-prepared.
Fees can sometimes rival those of traditional estate agencies.
In essence, commercial property auctions provide a speedy, transparent process, and the environment often stimulates competitive bidding. The high certainty of a sale and the potential for maximised value are powerful reasons to consider this route. If this approach resonates with your sales goals, kickstart the process with a free auction valuation to gauge potential returns. Our in-house auction specialists will guide you on the best strategies and recommend the ideal auction house to ensure a successful sale.
Remember, every property sale is pivotal, and the right strategy can significantly impact outcomes. And for a deeper dive into the auctioning world, be sure to explore our comprehensive guide on selling at auction. Happy selling!
3. Cash buying companies
Good cash buying companies are great problem solvers and they can be quite flexible in helping you. They may not be too flexible on the price they are able to offer you, but mostly all other terms can be flexible.Cash buyers are important in the market because they are able to purchase/ bring to market properties that are unmortgageable or problematic, or where the seller is in such a difficult situation that they require a quick sale within 7-10 days.The price they are able to offer you is based on the speed you require or the issue with the property. This means that they are likely to offer you somewhat less than the price other properties like yours will sell for in normal circumstances.
Advantages:
A cash offer within 24-48 hours
An exchange of contracts and completion within 7-10 days
Normally there are no (or reduced) legal costs
Disadvantages:
The price you are offered can be quite far below the expected value of your property
If the cash company use a surveyor after their offer, the price can be (and is often) reduced
You have to be comfortable selling the property for less than what it is worth at auction
In conclusion, cash buyers offer a great solution to those who are going through difficult circumstances where time is the primary pressure, where one simply can’t wait 4-6 weeks to go down the auction route, or where the auction route is unsuitable, and where the seller can be very flexible with their price. Some cash buyers can be a little unscrupulous and their offers can be reduced at times which can make their solution unviable.
Examples of some of the better known cash buying companies include: Property Buyers Today Property Rescue or Property Saviour.
Psst! 🤫 We’ve got a cosy little corner on our website where we chat all about selling property at auction in the UK. From the ups and downs to those handy insider tips, it’s all in our Ultimate Guide to Selling a House at Auction.
Why not pop over, grab a cuppa, and dive into the world of auctions with us?
