How to sell commercial real estate quickly and profitably
To sell commercial real estate profitably and quickly is quite realistic. To do this, you need to prepare the object for sale, set the optimal price and organize effective advertising. In this article we will consider all the important nuances of selling commercial real estate: determining the cost, the list of necessary documents, finding a buyer, mandatory taxes, the help of a realtor, etc.
Sale of commercial real estate: where to start
The first thing the seller of a commercial object should assess the situation on the real estate market in his city. This task consists of several stages: analyze supply and demand, compare objects, determine the optimal price.
One of the most important stages in the sale of any real estate, including commercial real estate, is to determine its value. Depending on the set price, the object can be sold for a long time or quickly, the seller can under-receive profit or, on the contrary, sell the object with a good profit.
What affects the price of commercial real estate:
location of the object - the location will be evaluated differently depending on the type of real estate, for example, for a retail outlet is important good trafficability, while for a warehouse plays a role of convenient access by car;
availability of infrastructure - proximity of parking and absence of competitors with the same goods is important for stores, availability of office centers, etc. is important for cafes;
condition of the object - if repairs, remodeling and updating of communication systems are needed, it may be necessary to reduce the price;
technical characteristics - the cost of the object is also formed taking into account the area, ceiling height, floor height, year of construction, type of flooring, availability of bathrooms, etc.
In addition to the fact that it is necessary to determine the cost of a commercial object for sale, it is also necessary to contact professional appraisers to conduct an independent expert assessment. The document issued by experts is included in the list of mandatory documents for the sale of real estate. In order to carry out an appraisal, it is necessary to provide a document on the title to the premises, land plot or other commercial object, as well as a technical passport.
What documents are required for the sale of commercial real estate
The list of documents for the conclusion of a contract of sale of commercial real estate will be different depending on who sells the object - a legal entity or an individual. If we are talking about the sale of real estate by a legal entity, then the following documents should be prepared for the transaction:
document of ownership right;
document on registration of a legal entity;
identification code and passport of the director (passport and certified power of attorney of the representative);
Articles of Association of the company with amendments thereto;
Memorandum of Association with amendments thereto;
technical passport;
extract from the register of ownership rights to the alienated commercial property;
minutes and order on the appointment or election of the director/chairman of the board;
seal of a natural person;
certificate on the type of activity of the enterprise;
land documents;
certificate of absence of tax liens and bans on alienation;
a protocol on the sale of a commercial real estate object with an indication of the sale price.
If the commercial real estate is sold by an individual or an individual entrepreneur, then the package of documents will be as follows:
certificate of ownership;
technical passport for the object and land documents;
extract from the register of alienation bans;
passport and identification code of the owner(s);
extract from the State Register of Aggravations for each owner (if the property was purchased during marriage);
marriage registration certificate (divorce certificate or death certificate of the spouse);
spouse's consent to the alienation of jointly owned real estate;
child's birth certificate (if the child is the owner of the property);
approval of the Board of Guardians for alienation of real estate in the interests of minor children or incapacitated citizens, if they are owners;
applications-refusals of other members of the shared ownership;
a document of independent expert evaluation of commercial real estate.
It is best to collect the documents before the start of the sale of the object, as on the first day the buyer may decide to purchase the property on display. If the necessary papers are not ready, the interested client may change his mind, as not everyone is ready to wait.
How to prepare commercial real estate for sale
To sell commercial real estate not only quickly but also profitably, it is important to take care that the object has an attractive appearance. Even if we are talking about a budget room, it may interest more buyers if it, at least, to clean and remove junk. If the commercial property is in a new house and was bought without repair, it makes sense to perform inexpensive cosmetic repairs. Such costs will be recouped when the property is sold.
Preparing commercial real estate for sale is not just about cleaning or cosmetic repairs. The object must be prepared for the transaction and in terms of documentation. It is important that the property is not under arrest or pledged. It is also necessary that there are no objections from third parties who have a claim to the object.
When putting commercial premises up for sale, it is necessary to determine its advantages. This may be favorable location, fresh renovation, proximity to infrastructure, convenient access, large parking lot, etc. Prepared information about the advantages will be useful in the next stages of the sale.
When the property is prepared, you need to decide on the price by analyzing the market and considering similar offers. If you do not correctly evaluate the object, the announcement of the sale may hang for months. If it is difficult to decide on the value of the property, you should seek the help of professionals: an appraiser and experienced realtors.
After that, you can work on drafting an effective ad and creating an advertising campaign in general. Advertisements should be placed where there is a target audience. This can be both appropriate sites-aggregators of ads, and thematic pages in social networks. For announcements you need to prepare high-quality photos and thoughtful text with a description of all the advantages. It also does not hurt to place a banner about the sale of real estate on the object itself.
How to find a buyer for commercial real estate
If the advertising is organized correctly, you will not have to wait long for interested customers. But it is also important to keep the buyer and bring him to the deal, which is not all sellers can do.
To make negotiations successful, it is necessary not only to describe to the buyer the advantages of commercial real estate, but also to explain what benefits they can bring. For example, the proximity of an office building to a retail outlet can be an additional source of customers.
The seller can also tell the buyer the size of the potential profit if the premises are rented out or used for their own business. It is important to draw the buyer's attention to how long the property will pay for itself. This can be a decisive moment for the buyer when purchasing a particular commercial object.
The best time to show a property is during daylight hours, when there is good lighting and when the commercial or office space looks most attractive. Proper demonstration of the property increases the chances of selling it quickly.
What taxes when selling commercial real estate
According to the tax legislation of Ukraine, when selling a commercial property, taxes must be paid by both the seller and the buyer.
What taxes are paid by the seller:
state duty - 1% of the value of the object;
tax on income of an individual or legal entity, FLP - 5%;
military tax - 1.5%.
If the property has been owned by the seller for less than 3 years or during one reporting year he sold several objects, in addition to the main taxes, it is necessary to pay income tax at the rate of 5%.
There are also nuances for sellers of commercial real estate who are not citizens of Ukraine. They pay the standard state duty and military levy, while the income tax is increased - up to 18% of the value of the object.
What taxes the buyer pays:
state duty - 1% of the cadastral value of the object;
Pension Fund fee - 1%;
administrative fee for re-registration of property rights.
The tax burden is reduced if we are talking about liquidators of the Chernobyl accident, participants of military operations and their families, persons with disabilities of groups I-II.
Whether it is worth applying for services in real estate agencies
Fast and profitable sale of commercial real estate is possible both independently and with the help of realtors. But in the first case, it is important that the seller has the appropriate knowledge and experience, otherwise the object may be sold for a long time or the owner will get less profit than he could. If you do not want to take risks and waste time, it is better to immediately contact a real estate agency.
Mayak real estate agency experts help to prepare a commercial object correctly, set the optimal price, and create an effective marketing strategy for a quick and profitable sale of real estate. The agency has its own client base and its own advertising channels, so the chances of selling the object urgently are much higher.
The realtors of the real estate agency "Mayak" take upon themselves the organization of viewings, price negotiations with buyers, and the preparation of the necessary documents. The agency also has its own team of lawyers and a notary. The seller does not need to look for where to check the contract of sale and make sure that the transaction is legal and with the protection of his interests.
Contact the professionals of the agency "Mayak", if you need to sell commercial real estate in Kyiv or Kyiv region quickly and profitably.
