Buying or selling your first commercial property isn’t as tough as it may seem. Before you make any moves in commercial real estate there is some vital information you should know. This article teaches you helpful advice so that you can make the most out of your experience.
Whether buying or selling, negotiate. Make your voice heard and strive for fair market value pricing.
Pest Control
If you are renting or leasing, be sure to know about pest control arrangements. This is especially important if the region is known for certain types of pest infestations. If this is the case, ask specifically what the landlord will do with regard to pest control.
If you are trying to choose between two desirable commercial purchases, the larger one may be the better choice. If you will be financing the purchase, you should take into account that doing so will require just as much time and effort for a small lot as it will for a larger lot. This just reflects the general advantage of buying anything in bulk; when you buy a property with more units, you get a lower average price for each one.
You need to make sure that the price you are asking for your real estate is a realistic price. Many things alter the value of your property./
If you desire commercial property for rental purposes, locate buildings that are simply yet solidly constructed. Tenants are more likely to move in when they know the property is well taken care of. Buildings like these are also easier to maintain, for both owners and tenants, since repairs are going to be required less frequently.
Always make sure that utilities can be accessed from the commercial property you are looking into. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.
Go on a tour of all potential properties. Think about asking a contractor to assist you in evaluating each of the properties, since they will likely see things that you may miss. Put forth your initial proposals, then open the table for negotiations. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.
Your new space may need improvements before you can occupy it. This may be simple changes such as painting or rearranging furniture. In many cases, the changes include moving walls to rearrange the floorplan. Be sure to negotiate who is responsible for these changes ahead of time so that you do not have to pay for the full cost.
Real Estate
When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. Never neglect the fact that you may be dealing with a “dual agency.” In this case, the real estate agency represents both sides of the transaction. Or, for short, the agent is looking out for both parties’ interests. You and the other party should both agree if dual agency is to be okay.
When you are first starting out in real estate investing, the best thing is to keep it simple and start with one investment strategy at a time. Decide on one property type and educate yourself about the best way to handle it. It’s better to master one type than to be mediocre at many.
Check the company’s reputation for customer service before you deal with them. If you don’t do this, you could end up with a bad deal and lose more money as time goes on.
Real Estate Broker
To make sure you are working with the right real estate broker, ask what they consider as a success or a failure. Also be sure to ask their method of measuring results. You should be on board with their techniques and strategies. Work with a real estate broker only if you share the same beliefs and strategies.
As stated earlier, you will need to prepare yourself extensively before pursuing commercial real estate. Hopefully, this article has been a good source of advice and inspiration that will contribute to your future success in the business of commercial real estate.