In fact, there is often more potential for profit in commercial properties than in residential properties. Sometimes it can be difficult to find the best opportunities available. Read these tips to learn how you can maximize your chances of finding the best deals and concluding a good transaction.
Examine socioeconomic conditions in the neighborhood you’re thinking of purchasing commercial real estate in. Pay special attention to the unemployment rate, and the average income level in your property’s neighborhood. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.
Figure pest control into your rented or leased commercial real estate property costs. It is a good idea to consult your rental agent for information on pest control policies, especially if the area your property is located in is known for a high population of insects and rodents.
Buying commercial property takes more time, and the process is far more labyrinthine, than buying a house. The fact is that commercial real estate brings in a higher return, therefore the process must be more intense.
List your real estate at a realistic price. A wide variety of factors exist that influence how valuable your lot actually is.
Check out where the utility hook-ups are on any commercial property. Look for access to water, electricity, gas an a sewer or anything specific to what you intend to use this property for.
When buying commercial property, think about the socioeconomic status of the neighborhood around the building. Purchasing in neighborhoods that are in the upper price per square foot range will help for successful business because the surrounding owners have more money to spend. If your business is a bit more shady, like a rent-to-own store, payday loan outlet, or pawn shop, it’s better to locate in a poor neighborhood.
If you are considering leasing a property to someone else, then cover all your bases to reduce the risk of a default. The less behaviors you have that constitute default, the less likely it is that you’ll have to deal with a tenant’s default. You want to ensure this doesn’t happen at all costs.
Read the disclosures when you’re ready to hire a real estate agent. Dual agency is a possibility that you need to be aware of. Dual agency means the real estate company is representing both the seller and the buyer in a property transaction. This means the agency works for the tenant and the landlord at the same time. It should be disclosed if there’s a dual agency, along with an agreement by both parties.
Only work with companies that are sincerely interested in the success of their customers. If you end up with a bad real estate company, you may pay more for the property than what it is worth.
After reading this article, you should be familiar with commercial real estate basics. Don’t get into a rut, and always be ready to respond to the shifting sands of the commercial property markets. This way, you will be able to see opportunities that other people don’t.