Commercial real estate transactions have many unique characteristics. The following advice will help you get the best deal on your property.
You need to bear in mind that in addition to the price of any property, you will also need to pay for taxes and duties. If you don't budget for these items you may end up scrambling about for extra funds - perhaps even needing an instant payday loans from payday lenders - to cover your costs.
Prior to investing massive sums of money in a property, take a hard look at community income averages, as well as employment rates, and how much hiring and firing nearby businesses are doing. Properties centrally located near universities and hospitals will have a consistently higher value, and it will sell more quickly.
Before you buy or sell a commercial property, find out several key economic indicators for the region, including trends in unemployment and income, as well as major employers in the region. If the building is near certain specific buildings, including hospitals, universities, or large companies, you might be able to sell it faster and for more money.
Research local prices similar properties have sold for before setting a price for your commercial real estate. A variety of different criteria require consideration in order to increase or decrease your property value.
If you rent or lease the commercial properties you own, keep them occupied as much as possible. When you have an open space, you have to shell out the money to keep it looking great and running well. If you have more than one empty property, think about why that may be, and consider what you may be doing to drive tenants away.
Prior to listing your property for sale, you should first hire a reputable, professional inspector to go over the place. Any problems or necessary repair identified by a professional inspector should be addressed and fixed as soon as possible.
Start drafting letters of intent by focusing on the more central issues. Once you have agreement on those, broaden the negotiations to include any smaller issues that remain. This will make negotiations less tense and make gaining agreement on the smaller issues easier to complete.
You need to know the details of emergency maintenance procedures. Be sure to find out who takes care of maintenance in the building and also who handles emergency repair situations. Have the phone numbers on speed dial, and know how long it generally takes stuff to get fixed. Take advantage of this information to devise a contingency plan in order to prevent and respond to customer complaints resulting from maintenance issues.
Scrutinize any disclosures made by a real estate agent whom you intend to hire. Remember that dual agency is also an option. In this situation, the agent will represent the buyer and seller. Dual agency occurs when the landlord and the tenant hire the same agent. Dual agencies require full disclosure and must be agreed upon by both parties.
One of the most important things you should be aware of is emergency maintenance. One way to develop such a list is to ask current commercial investors who they use in the event of an emergency repair. Know their phone numbers and also what their likely response time is going to be. Develop an emergency plan for those times when disruption in your services occurs. This advance planning can save your business reputation if an emergency strikes.
If you plan on renting out your commercial properties, find simply and solidly constructed buildings. Rental spaces that appear sturdy and well-maintained tend to attract tenants more quickly. Such buildings also usually need fewer repairs, which is an advantage for the tenants, as well as the landlord.
Now, you will now be more prepared when you are dealing with commercial real estate. If you felt confident before, you should feel even more so after reading this article. The hints and tips you've been given should assist you in making informed and successful decisions, regarding commercial real estate.
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