Whilst owning commercial properties can be a very exciting, lucrative venture, the properties themselves could demand a lot of time. It can be quite intimidating, and leave you wondering how to even start organizing the things that have to be accounted for. It’s daunting to figure all this out, but the following paragraph contains some helpful hints you can use to ease the process of hunting down and buying a piece of commercial real estate.
Regardless of whether you are buying or selling, you should negotiate. Be sure that your voice is heard so that you can get yourself a fair price on the property you are dealing with.
You must absolutely confirm that your real estate’s asking price is realistic. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.
Make sure you have the right access that has utilities on commercial properties. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.
When considering a piece of property, you must pay close attention to the surrounding area. If you are looking in a high-rent neighborhood, you may have a better chance at success once you get going because of the potential of area residents to have money to spend. You might want to buy a property in a less affluent neighborhood if you are selling products or services that less affluent people would find attractive.
Have property professionally inspected before you decide to put it up for sale. Any problems or necessary repair identified by a professional inspector should be addressed and fixed as soon as possible.
When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. The negotiations will become less tense and you will be able to better get an agreement on the more small problems.
If there is more then one property you are considering, acquire the house survey checklist for each one during your site tour. Get the responses from the first round of proposals, but make sure the property owners are aware of this before proceeding. Don’t be afraid to casually tell the owners that you are looking at other properties, too. Telling the property owner that he has competition for your money might inspire him to offer a better price to encourage you to buy from him.
Assess what you need before you look for commercial properties. You should list the most important things that you are looking for, such as space, restrooms, conference rooms, etc.
Any new space you acquire might need some improvements prior to you occupying it. This might include superficial improvements such as repainting a wall or arranging the furniture more efficiently. Many times, changes include reconfiguring the floor plan by moving walls. When negotiating, you should discuss who will pay for the improvements you’ll have to make, and should see if the current owner will cover some of your costs.
You should always know how to get in touch with emergency maintenance. Be sure to find out who takes care of maintenance in the building and also who handles emergency repair situations. Have a list of phone numbers to call if you need emergency repairs, and know how much time it usually takes for repairmen to arrive. Utilize the information given by your landlord to develop a plan for emergencies. This will help you ensure your reputation or customer service is not tarnished while your business is disrupted.
As outlined in the preceding paragraphs, successful investing in commercial real estate requires hard work, copious research and, truth be told, experience. You must also be persistent. Keep in mind the tips you learned, and you should have no problem making the right decisions when it comes to commercial property.