You may find that commercial properties are a bit pricier than their residential counterparts. Because businesses have specific needs that residences don’t always have, it’s crucial to find the right commercial property for your business. But with careful consideration and research, you can find a property that’s perfect for your business and get a great deal on it.
Here are some tips for getting better deals when buying commercial property:
1. Hire an expert real estate agent
Most commercial real estate agents specialize in a particular property type, such as office space, warehouses, or retail centers. You’ll want to find an agent who specializes in the kind of property you’re interested in and is familiar with the market in your area.
When hiring an agent, ask about their experience, the number of commercial properties they have sold, and whether they have any specialized training or certifications. You also want to make sure they are a good fit for your personality and that you feel comfortable working with them.
2. Look for hidden defects
Before making an offer on a commercial property, it’s essential to have a thorough inspection carried out. This will help you identify any potential problems that could cost you a lot of money to fix. No property is perfect, so don’t expect to find a property without defects.
However, if the property has significant damages, you may want to reconsider your offer or negotiate for a lower price. Some hidden defects to look out for include asbestos, water damage, and a pest infestation.
3. Consider buying unsold auction lots
During auctions, bidders often get caught up in the excitement and competition of the event, resulting in paying more than they otherwise would have. If a property doesn’t sell at auction, it’s often because the reserve price wasn’t met. This means that you may be able to directly negotiate a lower price for unsold auction lots with the seller.
You can browse through online auction databases or contact an auction house directly to find these lots. If you’re working with a real estate agent, they may also be able to help you with this task.
4. Understand the zoning regulations
Before buying a commercial property, you need to make sure that it’s zoned for the type of business you plan to operate. If it’s not, you may face significant penalties from the local authorities. Zoning regulations can be complex, so hiring a lawyer to help you navigate them is a good idea.
To find out the zoning regulations in your area, you can contact your local planning department or search for the information online. You should also have a copy of the zoning regulations before attending any property auctions.
5. Get a loan from a local bank
If you’re planning on buying a commercial property, it’s a good idea to get a loan from a local bank. Local banks are more likely to have experience lending to businesses in your area and will be familiar with the local market. They may also offer lower interest rates than national banks.
When shopping for a loan, always compare interest rates, fees, and repayment terms. You want to find an affordable loan that you can comfortably repay. If you’re not sure what kind of loan you need, a local bank can help you figure it out.
6. Consider the location
The location of a commercial property is one of the most important factors to consider. You want to make sure that the property is in a good location for your business. For example, if you’re opening a retail store, you want to ensure that the property is in a high-traffic area.
You also want to consider the future of the area. If there are plans for new developments, this could benefit or harm your business. It’s essential to do your research and understand the local market before purchasing.
7. Get a loan pre-approval
If you’re serious about buying a commercial property, you should get a pre-approval loan. This will give you a better idea of how much you can borrow and what interest rate you’ll be paying. It will also show sellers that you’re a serious buyer.
When you’re getting a loan pre-approval, shop around and compare interest rates from different lenders. Different lenders will offer other terms, so it’s essential to find the right one for you.
8. Research the competition
If you’re planning on opening a business, it’s essential to research the competition before buying a commercial property. You want to make sure that there’s a demand for your product or service in the area. You also want to make sure that you can compete with the other businesses in the area.
Doing this will help you understand the local market and make sure that you’re making a wise investment. Be prepared to adjust your plans if the competition is too stiff.
Commercial property can be a significant investment, but it’s essential to do your research before buying. If you follow these tips, you’ll be able to get a great deal on a property that will suit your needs. Remember to consult with experts before making any significant decisions to ensure that you’re making the best possible choice for your business.