Are you thinking of selling your Commercial Investment Property?
Regardless of what stage you are at, in the decision making process to sell your commercial investment property, it is important to run through a due diligience checklist early in the process.
There are many issues which may be discovered by a prudent prospective purchaser which can end up being very costly and hinder, or even stop a sale proceeding.
Our Agency Team can make recommendations on how to best present your property for sale. A freshen-up of the paintwork and surrounds, and some simple improvements are likely to add value, and optimize the ever-so-important “first impression”.
A few points to consider:
If the property is tenanted, it is very important to inform the tenant that the property is being listed for sale - they may even be interested in acquiring the property. The tenant can also make or break a sale, so any issues with the tenant need to be rectified;
Any outstanding council or water rates or any other fees which have not been paid - you should finalise all payments up to date;
In Victoria you need to have a Vendor's statement - Section 32 prepared by your Solicitor or Conveyancer before you proceed with selling. If you wait until there is interest in the property, any delay in waiting for preparation of this document could be the catalyst for a prospective purchaser to walk away;
Seek advice from your Legal Practitioner, your Financial Advisors or Accountants so you clearly understand any areas of risk, plus GST or other tax matters which may be pertinent to a sale of your commercial investment property.
If you are interested in discussing selling your commercial investment property contact our CPMS Commercial team for a confidential discussion.
METHOD OF SALE:
If you submit your property for Auction, this means that prospective purchasers will bid against one another at a date and time suitable to you. You can set a reserve price, which is the minimum you will accept, and once bidding has passed that level you know you have a sale, as it will be unconditional and a predetermined deposit must be paid on the day.
Sale by Private Treaty is a method of selling where you set a price at which your property is to be marketed to the public through the marketing plan agreed to by you and the agent.
Sale by Tender or Expressions of Interest (EOI) both have set period of time for the marketing and submisions by potenital purchasers. Sale by Tender is a more formal process requiring Tender documentation and contract of sale to be prepared prior to presenting the property for sale to the market. Expressions of Interest (EOI) sale campaigns are less formal with an end date which can be extended. Both processes enable the Vendor to give consideration to all offers at the same time, taking into consideration of any conditions requested.
When considering listing your commercial property for it woudl be recommended you meet with your Agent to discuss the best method for the type of commercial property and the current market sale conditions.