If you begin viewing real estate listings, you might notice three different categories. You can find residential real estate for sale, vacant land, and commercial properties. If you want to buy real estate for business purposes, you will need to find a commercial property to purchase. Commercial property is for business use, and you can find all kinds of properties that fall into this category. As you search for the right one to buy, here are several questions to ask and analyze before making an offer.
What Zoning Does the Property Have?
When you find a commercial property, you should know that there can be different zonings on each one. Zoning is something that states, counties, and towns label properties with, and the zoning dictates the usage of the property. You will need to know what type of zoning you need for your business, and you must make sure you purchase a property with the correct type. While you can change a property's zoning, the process is difficult, costly, and time-consuming. Also, there is no guarantee that you can get the zoning changed. Therefore, find out the type you need and purchase real estate with that type.
What Expenses Does the Property Have?
As you begin finding commercial real estate for sale, it might be wise to ask about the property's expenses before purchasing it. The listing agent might have a document called a pro forma. This document lists all the property's expenses, and you can review it to see what these are. Knowing the expenses is helpful, as you must factor them into your purchase. Some of the expenses the pro forma should include are property taxes, insurance, and utilities.
Is the Property in Good Condition?
Before you view the property, you might want to ask your agent if it is in good condition. You might also want to ask why the owner is selling it. When you buy commercial property, you will likely have to make changes and updates to the property. However, you should always find out the condition before buying it. It is best if you can view the property to inspect it. You can also hire inspectors to view it for you. If the property needs too much work, you might want to find a different one to purchase.
Buying commercial property is different than buying other types. Therefore, you might want to speak with an agent from a real estate company with knowledge and experience in selling commercial real estate.