Before listing commercial property: agree on your selling decisions

1. Start with what the sale must accomplish

Before choosing an asking price or arranging photographs, write down why you are considering a sale. Releasing capital, simplifying ownership and moving a business create different priorities. A good selling plan connects the property transaction with what you need to do afterwards.

For a Metro Vancouver or Fraser Valley owner, the useful starting point is specific: what would a successful sale allow you to do, and what would make an otherwise attractive offer difficult to accept? Keep the answer short enough that everyone involved can use it. An ambition to achieve a strong price is reasonable, but it does not resolve questions about possession, ongoing operations or the funds available after closing.

2. Separate requirements from preferences

Create three lists: requirements, preferences and questions still to resolve. A requirement might be coordinating possession with a business move. A preference might be avoiding minor preparation work. An unresolved question might be whether a proposed completion date fits your financing arrangements.

Do not treat every preference as non-negotiable. Rank the trade-offs before negotiations begin so a promising proposal does not trigger an entirely new discussion between owners. Equally, do not describe a point as flexible until the people affected have considered the consequences.

Illustrative example: an owner-operator selling a Langley industrial unit may prefer an earlier completion but need time to relocate equipment. The planning task is to investigate how those needs could fit together with legal and operational advice. It is not to promise a buyer possession that the business cannot deliver. This is a hypothetical example, not a past client transaction.

3. Review the money you expect to retain

An expected sale price is not the same as the amount available for your next plan. Ask the appropriate advisers to prepare a property-specific estimate that considers debt repayment, transaction costs, tax questions and any other relevant commitments. Keep assumptions visible and update the estimate as the proposed transaction becomes clearer.

BCFSA uses the sale of a rented investment property as an example of when independent advice from a tax accountant may be needed. Arrange that discussion while you are shaping your plan, rather than relying on a general explanation after negotiating the important terms.

Test more than one possible outcome with your advisers. If a lower price, additional preparation cost or different completion date would change your next move, identify that dependency now. This article does not prescribe a tax treatment or ownership restructuring; those depend on your circumstances.

4. Connect the sale with the people using the property

For an occupied property, list the activities a sale could affect: customer access, staff routines, deliveries, tenant communication, inspections and eventual handover. Have the applicable lease and other agreements reviewed before making commitments about access or possession.

A tenanted Richmond storefront and an owner-occupied Surrey warehouse need different practical plans. Decide who will coordinate enquiries and viewings, what operating constraints need to be communicated, and which questions require advice before an answer is given. Keep private business information controlled while obtaining professional advice on what must be disclosed.

The aim is to describe the property accurately and organise the process around real operating conditions. Avoid treating an empty calendar slot as proof that a viewing, inspection or move can take place.

5. Agree who makes decisions and who provides advice

Identify who needs to be consulted, who can give instructions and who can approve commitments. If ownership involves more than one person or an entity, ask your lawyer to confirm the relevant authority rather than assuming the person handling day-to-day matters can bind everyone.

Assign responsibility for collecting records, reviewing financial assumptions and responding to questions. Choose a practical way to circulate proposals and record decisions. A shared brief helps participants work from the same facts, but it does not replace legal documents or the advice needed for an actual agreement.

Keep negotiating priorities within the appropriate advisory group. Discuss with your real estate professional how the marketing message, confidential information and disclosure obligations will be handled. BCFSA’s consumer disclosure guidance explains the representation discussion that accompanies working with a real estate professional.

6. Finish with a one-page selling brief

Write down the purpose of the sale, the property and interests being considered for sale, your requirements and preferences, outstanding advice, operating constraints and the people responsible for decisions. Add the assumptions behind the expected net proceeds and the circumstances that would prompt a review.

Then ask: what remains unresolved before we are comfortable going to market? Some questions may need an accountant, lender, lawyer or technical specialist. Others can be addressed through a pricing discussion or a better information package. Give each unresolved item an owner and a next action.

Use this brief when reviewing marketing recommendations and later when comparing offers. Update it when evidence changes, rather than defending an assumption because it appeared in the first version. The result should be a clearer decision process, not a guarantee of price or timing.

Your selling brief checklist

• Purpose of the sale and what happens next: ____________________
• Requirements, preferences and possible trade-offs: ____________________
• Estimated net proceeds and assumptions needing advice: ____________________
• Operating, tenant and possession considerations: ____________________
• Decision-makers, advisers and confirmed authority: ____________________
• Outstanding question, responsible person and next action: ____________________

Sources and further reading

• BCFSA: Consumer Guide to Duties to Clients
• BCFSA: Consumer Guide to Disclosures