7 mistakes when selling a commercial property yourself (and how to avoid them)
Looking for the complete overview? Read our guide selling commercial property without an estate agent: value, costs, steps and a no-obligation offer within 24 hours.
Selling yourself is allowed, and can turn out well
There is no legal obligation to engage an estate agent. In commercial real estate, owners regularly sell themselves, especially to a known party, a tenant or an investor. However, the commission you save is quickly evaporated if you make one of the mistakes below. We list them as we encounter them in our purchasing practice. Our step-by-step plan is in selling commercial property without an estate agent: step-by-step plan.
Mistake 1: determining value by gut feeling or on the WOZ
The WOZ-waarde is a tax value with a reference date in the past and says little about the market value in commercial real estate. For tenanted real estate, calculate with the rental stream and a market-conforming initial yield, and for vacancies with the user value minus the investment a buyer must make. More on this in commercial property valuation: DIY or outsource.
Mistake 2: underestimating the duty of disclosure
As a seller, you have a duty of disclosure regarding defects you are aware of. Keeping silent about a leaking roof, soil contamination or a dispute with a tenant is not a clever negotiation tactic but a liability risk that comes back after completion. Put everything you know on paper and have the buyer sign for receipt.
Mistake 3: no professional purchase agreement
A purchase agreement for commercial real estate is not a residential contract. Think of the VAT clause (taxed or exempt delivery), the takeover of rental agreements and security deposits, the state in which it is delivered, and penalty clauses for non-performance. Always have the draft checked by a notary or real estate lawyer; that costs a fraction of the commission you save.
Mistake 4: only discussing VAT and transfer tax at the notary
Whether delivery takes place with or without VAT, whether a revision period is still running and which transfer tax rate applies: this belongs in the negotiation, not in the deed. Otherwise, the bill shifts at the last moment and usually to you. General information can be found at belastingdienst.nl.
Mistake 5: negotiating without a lower limit
Determine your net lower limit after tax and after all costs before the first meeting. Without that figure, you negotiate on feeling, and you lose that against a professional buyer who sits at the table every day.
Mistake 6: not checking the buyer
Request an extract from the Handelsregister (accessible via kvk.nl) and for demonstrable financing capacity. An offer is only worth something if the party behind it can deliver.
Mistake 7: forgetting ongoing costs
Every month the building is not delivered, you continue to pay interest, insurance, levies and maintenance. Waiting six months longer for a slightly higher offer is often a net loss.
Selling yourself and without the hassle: the middle way
Selling to a party that buys directly combines both: no commission, but also no self-discovered legal pitfalls, because the buyer organises the file and the notary. We purchase commercial buildings, HMOs (kamerpanden), student housing, retail and catering premises and other commercial real estate. Always have your own advisor look over the purchase agreement, even with us; that is how it should be.