December 19, 2022 | Selling

5 Ways Selling a Business is Different From Selling a Home

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The specialized nature of commercial real estate makes the process of selling a business vastly different from the sale of a home. If you’re thinking about selling your business, being aware of these distinctions is a helpful first step toward a profitable sale. 

As industry-leading commercial real estate agents, our meticulous approach to selling businesses and commercial properties has allowed us to understand the process inside and out. In this post, we’ll pass some of that knowledge on to you. 

Here are 5 ways selling a business is different than selling a home. 

Selling your business? Click here for helpful tips on how you can make the transition easier for your staff. 

1. Selling a Business is a Longer and Larger Process 

One of the most notable differences between selling a home and selling a business is how long the process can take. Comparatively speaking, residential transactions are far more straightforward than business sales and can happen fairly quickly in certain market conditions.

Commercial real estate has a lot of moving parts, as a result, the selling process can take much longer. If you’ve sold a home in the past and are expecting a similar timeline for your business sale, you may want to curb your expectations. 

2. Communication & Confidentiality

During the sale of a home, confidentiality isn’t typically a concern. In fact, most home sellers can’t wait to tell their friends and family once their home hits the market. In the world of commercial real estate, transactions are often far more discreet. 

While selling a business is exciting, prematurely announcing the sale can lead to complications, misinformation, and stress among staff and customers. During a commercial real estate transaction, confidentiality is an important element of ongoing communications. To minimize potential disruptions, your commercial real estate agent will help you build a strategic, well-timed communication plan when it comes time to get the word out. 


Already plotting your next business venture? We’ve got more blog posts to help you accomplish your goals. 


3. There Are More People Involved 

During the sale of a home, there are typically just a few people involved – the buyer, seller, their real estate agents and lawyer(s). However, in the case of selling a business, there are far more parties involved in the process. This is one of the reasons commercial real estate transactions can take much longer. 

First, there’s the business owner(s) and stakeholders, as well as the buying party – which can similarly comprise of multiple people. Next, the seller and buyers’ commercial real estate agents, brokers, financiers, franchisors*, lawyers, and more. As each business is unique, the number of people involved in any given transaction will vary. 

4. Research & Due Diligence

In a residential home sale, disclosures and home inspections are a standard part of the process. However, the research involved in a commercial real estate transaction is far more complex and in-depth. This process is often known as due diligence, and it gives interested buyers the opportunity to review key details and documents regarding the business’s legal and financial standings. Buyers will also look into the business’s existing relationships and infrastructures, such as contracted suppliers, staff members, unions, and IT arrangements. 

Interested in learning about businesses we’ve sold in the past? Check out our portfolio of sold listings here


Searching for more helpful insights pertaining to the sale of your business? Explore these other pages from our site. 


5. The Are Brand Components

Generally speaking, a residential home sale entails the house itself and the property surrounding it. During the sale of a business, what is actually bought and sold can extend beyond physical assets. For example, in the case of selling a franchise, the purchaser will gain access to certain branded elements of the business, along with larger resources and support from the franchisor. A business sale can also include other physical properties related to the business like equipment or appliances.

How We Sell Commercial Real Estate

If you’re thinking about selling your business or commercial property, Northern Hospitality Real Estate can help you exceed your goals. As high-performing commercial real estate specialists, we’ll help you understand your options, make sense of the process, and accomplish a seamless sale – all without leaving money on the table. 

We’ve worked with countless brands and businesses throughout Toronto, southern Ontario, and beyond. Our team has tangible experience with a wide range of business models and commercial properties. Regardless of what business you’re in, our specialized industry background offers you a competitive advantage in the market. 

As commercial real estate experts, Northern Hospitality can help you turn your dreams into a reality. Send us an email or call 647-280-4404