If you’re wondering how to sell commercial real estate without a realtor, we’ve got you covered. If you’re in this position, your goals are simple: sell your property for the highest price and have a fast and smooth closing process. This guide will help you do just that.
What is commercial real estate?
While residential properties are for living quarters, commercial real estate is for business activities. Some examples of commercial real estate include:
- Office buildings
- Industrial properties
- Multi-families
- Retail stores
- Mixed-use buildings
What you need to know about selling commercial real estate
While selling commercial real estate shares specific characteristics with residential transactions, commercial sales are generally more complex and require a higher level of expertise. Here are a few things to consider before selling your commercial property without a realtor.
- Complexity: Selling commercial real estate is more complicated than selling residential homes, as more rules and specific procedures are involved. For this reason, it’s usually necessary to consult with real estate attorneys and other professionals at some point during the process.
- Savings: One of the main draws of selling commercial real estate yourself is saving money on realtor commissions (typically 4-8% of the sale price). A for sale by owner (FSBO) transaction allows you to keep more money in your pocket.
Selling commercial real estate requires a higher level of organization and expertise than a residential home sale. It is possible to sell commercial property independently, but make sure you have realistic expectations about the time and work involved in closing the deal.
Disadvantages of selling commercial real estate without a realtor
Though there are advantages to a commercial FSBO sale, there are several disadvantages to consider before diving into the process.
- Inexperience: There can be a learning curve to selling commercial real estate. For example, you might not know where to look for buyers or how to negotiate offers. To put it simply, you may not know what you don’t know.
- Time-consuming: If you decide to go the FSBO route, be aware that it may be more than you bargained for. You will have to do everything yourself, including marketing your property, communicating with buyers, negotiating offers, and other time-consuming tasks that a realtor typically handles.
- Less exposure: Selling on your own may result in less exposure to your property, resulting in fewer offers. A realtor knows where to look for potential buyers and typically has a vast network to tap into.
How to sell commercial property by owner
If you’ve reviewed the pros and cons and decided to sell your commercial property without a realtor, here are the steps to take:
Get an appraisal
An appraisal is an official assessment of your property value that helps set your price and ensures you’re not undercharging or overcharging for your property. It’s best to hire someone that specializes in commercial real estate, but be aware that appraisal fees vary based on the size of your property and the scope and nature of the transaction.
Market your property
The next step is to market your property to gain exposure and (hopefully) reach the right buyers. Here are some tips:
- Know who you’re trying to reach: Take a step back and think about who is likely interested in your property — a “buyer persona,” if you will. Once you know your target audience, it will be easier to find them. For example, if you’re selling a retail space, the first place to start might be similar properties in the immediate vicinity.
- Connect with your network: Reach out to your network, local professional organizations, chamber of commerce, and economic development board to raise awareness about your property and get referrals.
- Create a property website: Posting your property on an online commercial real estate marketplace can be expensive and hit or miss. Instead, try creating a simple website that includes photos, videos, and basic information about the property, including square footage and amenities.
Find buyers
Posting a property on Craigslist and waiting for buyers to come to you doesn’t cut it anymore. If you want to sell your commercial property, you have to be proactive and seek out buyers through networking, referrals, cold calling, and social media.
Costs of selling a commercial property
Before selling a commercial property, it’s essential to be aware of the expenses involved.
- Appraisal: You must pay an appraiser to provide an official estimate of your property’s market value.
- Inspection: A commercial property inspector will assess your property from top to bottom, paying particular attention to the structural integrity of the building and ensuring everything is up to code.
- Title expenses: Running a title search is necessary for any commercial real estate transaction. In some cases, you may also have to pay for title insurance.
- Attorney fees: You will likely need to hire a real estate law firm to draft legal documents to protect all parties involved in the transaction.
- Realtor commission: If you hire a realtor to help with the transaction, you can expect to pay a 4-8% commission. However, this cost won’t apply to you if you sell it yourself.
- Marketing & advertising expenses: If you don’t already have an interested buyer, you will have to market your property. Commercial real estate marketing expenses include the cost of listing your property on websites and databases, property staging, and photography.
- Settling debts: You will need to pay any outstanding debts on the property as part of the closing process, such as mortgages, tax debts, liens, etc.
Get a cash offer for your commercial real estate today
Do you want to avoid realtor commissions and sell your commercial property as quickly as possible? Consider selling to a reputable cash home buyer that pays cash for real estate in any condition.
We know the process inside and out and will guide you through the complexities of your commercial real estate sale. Give us a call to discuss your situation at 781-309-7085 or apply online for your free cash offer. If we’re not the right fit, we’ll point you in the right direction.