Having to deal with the commercial property business can be stressful and overwhelming for those new to it and even to those experienced with it. The article below discusses information and ideas to reduce the stress and headaches of purchasing commercial real estate.
Negotiating is essential. Be certain your needs are met, your concerns are heard, and you champion a fair, honest price for the real estate.
Before you jump into a commercial real estate deal, you want to get a lay of the land first. This means considering and examining the general income levels in the area, how high or low unemployment rates are, and looking at the hiring practices of employers within the vicinity of where you intend to invest. Properties that are near major employment centers, such as medical centers or universities, often sell more quickly and at a higher price.
Consider visiting websites that contain a wealth of information beneficial to new and seasoned commercial real estate investors alike. It is always best to work with as much information as possible, so take the time to absorb everything you can when working with commercial real estate.
Location is crucial when it comes to commercial property. When investing in a property, consider what type of neighborhood it is located in. Don’t forget to check out similar areas as well, in order to see how other neighborhoods are growing economically. You need to be sure that in five to ten years later, the area will still be growing.
It is always best to be aware of how your asking price is in relation to the market price. A wide variety of factors exist that influence how valuable your lot actually is.
Take a tour of any property that you are interested in. Look into having a professional contractor accompany you as you take a look at the properties you’ve been thinking about purchasing. Make the preliminary proposals, and open the negotiating table. Make sure you evaluate any counteroffers well enough before you make any purchasing decisions.
When viewing multiple properties, be sure to get a checklist from the tour site. Accept responses to the initial proposals, but don’t go further than that unless you inform the property owners. Don’t fear telling the owners that you might be interested in other properties. This may provide you with more room for negotiation.
Have a list of goals on hand before you start searching for commercial real estate properties. Draw up a list including all the features your ideal property should have, such as property size and location, or the total number of restrooms, offices, etc.
You must know how to deal with an emergency, should it arise. Ask in advance who will be handling any emergencies that arise. Have the phone numbers on speed dial, and know how long it generally takes stuff to get fixed. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.
Read the disclosures of the real estate agent you are planning to hire. Remember that dual agency is also an option. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. In other words, the agency represents the landlord and the tenant simultaneously. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.
Regarding commercial loans, it is the borrower’s responsibility to obtain an appraisal. If you don’t follow the rules, the bank will refuse to let you rely on it. Order the appraisal yourself to avoid a headache.
Whether you’re a novice or a pro, finding the right piece of commercial real estate can be difficult and nerve-wracking process. The article below will help to lower the stress involved, and have a pleasant experience during your hunt for commercial real estate.