Did you know that there are literally, millions of properties across America that have been foreclosed on this year alone? Many of these are commercial properties. What this means, is that the real estate market is still unstable, so you need to be properly informed as a buyer before acting. This article will give you some great buying tips so that you can act as an informed buyer.
An important tip to remember with rental real estate is to get the entire contract and terms in writing. This is important because this is your property and if anything goes wrong during the duration of the rental, you want as much on paper to back you up as possible.
Some apartments come with a garage. Measure it before you rent the apartment to make sure your oversized SUVs or pick-up trucks fit inside. You may have only one additional parking space beside your garage and there will be no room to park your extra long vehicle. Make the necessary arrangements with the management before you rent as it might be impossible to remedy the situation later.
If you are relatively inexperienced with commercial real estate investments, don’t forget that as with other investment types, there is a learning curve that will allow you to select and pursue properties with more confidence as you become increasingly familiar with the process. Don’t rush yourself. Be sure to take the time to absorb all of the details and processes involved.
Familiarize yourself with the basics of commercial real estate property valuation. The things that can up residential value: kitchen, number of bathrooms, landscaping, and so on – mean little or nothing for commercial investors. One of the most important determinants of value for a commercial property is the square footage, and what the square footage yields in rental income.
As a commercial real estate agent or seller, be prepared to exercise patience and maintain optimism. Commercial properties are considerably more expensive and complex than residential real estate properties; each stage of the selling and buying process is considerably more protracted than what you may be used to. It is not uncommon for even the most attractive commercial properties to remain listed for months before generating a single prospective buyer.
As you prepare to list and sell your commercial property, you should first take the time to familiarize yourself with zoning regulations and all possible commercial uses for the property itself. This will allow you to be more confident as you discuss details and attributes with your prospective buyers.
Remember to take everything your real estate agent says with a grain of salt. While they technically are on your side, at the end of the day they prefer to turn in several quick purchases instead of making $100 extra by pushing for the absolute best deal for you. Listen to their advice, but remember to make your own final judgment.
If you are going to buy a car you always look at several options first. The same should go for choosing a real estate agent. Do several interviews by phone and then make a shortlist of 2 or 3 of your favorites. Meet these agents in person to see if you have good chemistry with them.
All of the many foreclosures don’t necessarily mean that you can get a commercial property for a great price, automatically. What it means is that property values are still plummeting. Use the information in this article to ensure that you avoid getting into an overpriced property with little value. If you can use these tips wisely, you’ll do just fine.