Industrial property and other commercial properties are going up on the market all the time, but this type of property does not get preferential listings like regular homes. The advice presented in the following article will enlighten you on how to find your way through the real estate market to locate these industrial and commercial properties.
Regardless of whether or not you are the seller or the buyer, negotiate! Make sure you have a voice and that you are offered a reasonable amount of money for the property.
When dealing with commercial properties location is everything. For example, consider the surrounding area and local neighborhoods. Consider how this area is growing in comparison with similar areas in the region. The ideal location is situated in an area that can sustain economic growth for many years to come.
Once you have narrowed your choices down to two major contenders, you should expand your decision to include the big picture. Regardless of whether the property you decide on has twenty units or fifty, the process of obtaining financing will be the same, and in both cases will require substantial effort. Generally, this is much like the principle of buying in bulk; the more units you buy, the lower the price per unit.
When you are picking a broker, make sure you know if they are experienced within the commercial real estate market. Be sure that they specialize in the area that you are buying or selling in. Most brokers will require you to have an agreement to work exclusively with them.
Make sure that any property you’re considering purchasing has access to all the utilities you’ll need. Your business may have unique utility needs, but at the very least, you probably require hookups for electric, sewer, water and most likely, gas.
Prior to listing your commercial property for sale, have it checked out by an inspector with at least five years of experience. If they do find anything amiss, get it fixed immediately.
If you want to sell a property, advertise it locally and on a wider level too. A lot of sellers fall into the misconception that only the local buyers are interested parties in potential purchase. There are many private investors who will buy affordable priced property in any area.
Take tours of properties with purchase potential. Even better, have someone who knows commercial real estate tour the properties with you. Set the stage for future negotiations by putting forth the preliminary proposals. Take your time and really explore your offers before you decide to buy or pass.
When you write your letters of intent, start off by dealing with the larger issues, then move on to the smaller ones later. The initial negotiations will be less tense and the smaller issues will seem less important later.
Know what your specific needs are prior to starting your commercial real estate hunt. You should write a list of which features are most important to you. For example, do you need a specific number of restrooms, a specific amount of square footage, or a conference room?
Be aware that not all commercial brokers are alike. Choose the real estate broker who will best help you meet your needs. You have a full service broker who works on behalf of both the tenant and landlord, then you have brokers who only work with tenants. You may be helped much more with a broker who just works with the tenant, as that person most likely has more experience in handling tenants successfully.
Be sure to deal with a company where customer care is important prior to buying. If not, you may eventually pay dearly for an easily avoided mistake.
Before you make a decision on which real estate broker to use, see how they negotiate. Inquire into their specific credentials and training; do not be afraid to ask for references. Also be sure to ask about their style of work to ensure that they follow ethical procedures while looking for that optimal deal. Ask for examples of successful and unsuccessful past negotiations.
Real Estate
When you are diving into commercial real estate, you want a broker firm that maintains honesty. A good question to ask potential firms is how most of its money is made. They should likewise be honest if this creates a conflict of interest in their relations with you. Understand that there is still a profitable business to be ran behind the curtains, but a good firm will find an agreeable median between their financial needs and your real estate demands.
Finding your optimum commercial real estate property will only see you half way through this process. A little bit of education can help you to be better prepared.