Selling Mt Gambier commercial property? See our top 5 tips first
In Mount Gambier, we’re observing a generational change in property investors who are keen to breathe new life into older commercial properties.
If you’ve decided to sell your commercial property, you have a ready-made market. However, before you sell, check out these tips to help you get the most from your commercial property sale.
Our top five tips for selling commercial property
Tip 1. Assessment of all tenancy statuses
If you have a good tenant, the leasing status should be established via skilful negotiation and communication. Should your tenant’s lease be coming to an end, we have in place a process of negotiation to offer a tenant some options to lengthen the time frame for the fixed-term lease.
While residential real estate buyers mostly prefer vacant possession, commercial property investors prefer the comfort of a tenanted property.
Investors with a different risk-reward profile will happily buy an untenanted commercial property; however, they will expect a sale price discount in proportion to the risk of vacancy.
Of course, we have purchasers who are looking for premises from which to run their business. In this case, the buyer will prefer vacant possession.
Whether your property is tenanted or untenanted, the Herbert Commercial team have the skills and knowledge to assess whether or not a property is likely to be purchased by a commercial property investor ‒ or the type of purchaser who wishes to take immediate possession ‒ and assess the asset value accordingly.
If your commercial property is currently vacant or has a lease that may conclude in the short term, talk to us about finding a suitable solution, a move that will instantly increase the value of your commercial asset.
Tip 2. Consider your Capital Gains Tax (CGT) liability
As a property owner, you may or may not be aware that your commercial property sale will generate a Capital Gains Tax event.
To mitigate your CGT, it’s advisable that you have all the paperwork prepared well in advance.
- Keep all your receipts for deductible expenses
These might be for renovations or improvements such as air conditioning or skylights. You might have sought legal or business advice from a consultant, or paid a manager to manage your property and your tenant.
- Ensure your depreciation schedule is up to date
If you don’t have a current depreciation schedule, it might be a good time to seek professional advice from a registered quantity surveyor so the Australian Taxation Office trusts that the information is sound.
- Talk to your accountant
We recommend also that you seek advice from the Australian Taxation Office. You’ll find useful advice on the ATO website.
Talk to us at Herbert Commercial for industry-relevant, professional appraisal services to assist in determining market value for your commercial property sale.
Tip 3. Identify all your costs of sale
When you consider the costs of the sale, remember you need to take into account your quantity surveyor (if you use one), your accountant, your solicitor and a valuer.
As well, you’ll need to allow for your real estate agent’s commission, plus advertising and marketing costs.
Talk to us about how commission works and our rate of commission.
Tip 4. Create your team
Selling a commercial property isn’t something we recommend you do on your own if you want to extract the maximum value from your asset. So before you consider putting your property on the market, we recommend you assemble your ‘team’. Your team could include your real estate agent, your solicitor, the valuer, your accountant, a quantity surveyor who will make sure your depreciation schedule is compliant with legislation, and any investment partners. Ultimately, you want everyone in the team working together for a smoother transaction.
We have existing and proven relationships with all of these professional providers who specialise in commercial transaction activity. We can provide access and/or guidance as to the service providers that will best suit your needs.
Let us help you manage your team.
Tip 5. Research the market (with your real estate agent)
Herbert Commercial is the only dedicated commercial real estate agency in Mount Gambier. We understand the market conditions, have excellent knowledge of buyer expectations and we’re able to gauge the market ‘temperature’ to arrive at the optimum price.
As well, we hold a database of keen buyers who include developers, some of whom are prepared to pay a premium for commercial property in the optimum location for redevelopment.
The transaction data we hold is the largest, most current commercial-sector leasing transaction data. Using this comprehensive data, we can more accurately assess the value of your commercial property.
Can we help with your Mount Gambier commercial property sale?
At Herbert Commercial, our expert team can help with everything from tenant negotiations to the marketing and sale of your property.
Call us today on 08 87 250 500 for industry-relevant, professional appraisal services to assist in determining market value for your commercial property sale.