The obvious difference between commercial real estate and its residential counterpart is the type of properties being purchased. Residential refers to homes, whereas commercial real estate involves buying, selling, and leasing land or buildings. It is also worth noting that the commercial side of things is often divided into the following four sections:
Important Information about Commercial Real Estate
When looking at suitable commercial properties, you should be aware of zoning since this practice limits the type of activity that can take place on the site. It is necessary to have a team around you to successfully complete the transaction. For instance, a commercial real estate broker at Bobek Commmercial will handle the listing and showing of the properties and communicate with all brokers involved in the deal.
Many commercial properties come with machinery and fixtures and it is the broker's job to determine their value, plus factor this additional material into the overall purchase price. The real estate agent must ensure that there are copies of business records available for future buyers to view upon request.
Marketing & Closing
There is little difference between residential and commercial real estate brokers when it comes to marketing. The days of the 'open house' are coming to an end with virtual tours, the preferred method of viewing a listing as time-poor customers relish the opportunity to look at the property without being forced to take time away from their business.
Typically a third party, such as an escrow firm, is responsible for closing the deal as documents are signed by all parties. This third party handles the financial side of things whereas the title company must finalize the documentation and pay the closing costs.
The Future of Commercial Real Estate
There is no doubt that investing in commercial real estate is a financial risk, but where there is no risk, there is seldom a reward. The property market in the United States took a huge hit a few years ago but we believe the slump is steadily coming to an end. A recent report stated that the nation's real estate market will see a recovery in 2013 as experts in the industry spoke positively about increased demand. Now may be the perfect time to enter the industry and if you need assistance, don't hesitate to contact Bobek Realty Group!
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