Commercial Real Estate – Expectations VS Reality
Whether you are a buyer or seller, there is no such thing as, “another day, another deal” at least for most people. Normal people imagine and expect things differently. At first, they think everything will go according to the plan; just to find out the reality is far different from the expectations.
Real Estate Expectations VS Reality
Today, everything looks good on paper and from the outside, but most of the time reality is just not what we expect. Let’s assume, you require a commercial space for your new startup. So you just start browsing on the internet and suddenly you end up on a glorious web page with lots of promises. You contacted the seller, set up a meeting, and when you reach the location, you find a lot of things missing. Which leads to disappointments and unnecessary time waste.
It doesn’t matter if you have any experience in real estate or not, this blog will break down the expectations and the reality regarding real estate.
Information
When you step into the market, you will realize how fierce the competition is. So if you are trying to sell a property, it won’t be that easy. Similarly, when you buy a commercial space you will encounter false information all around. This concludes that finding a desirable property, either for business or personal, is difficult to obtain. At least, not as quick as you think.
If you are a seller and want to sell business coworking space, you need to adopt robust methods to reach a large audience. Furthermore, it is not advisable to boast about the property. If you try to do that, you will lose the leads. However, if you are delivering what you are promising, not only you will sell it quickly but also gain credibility in the market as a reputed seller.
If you are a buyer, make sure not to fall for offers that are too good to be true. Check the reviews about the seller and carefully go through the information provided by them. To be more secure, pay attention to attention-seeking wordplay.
Let’s find out what the most popular phrases/words (in selling properties) mean –
Lots of potential – probably not much potential
Quant – probably too small
Close to the action – Probably in a busy location
Off the grid – probably too far to reach
Secluded – same as off-grid
Historic building – probably requires fixing
Photos
Just to sell the property, the sellers try every innovative technique they can to sell commercial real estate. The most infamous one is posting misleading photos on the internet. Coupled with a few more things, it’s a perfect recipe for generating leads. Out of those leads, most of them avoid making deals, but eventually, some of them end up buying. Furthermore, it is not just limited to commercial properties; it goes with every business of every kind.
We all have been there once and fooled by these amazing photos. For example – if you place an order on an eCommerce website ignoring the brand with just specifications and qualities in mind. The chances are the product delivered is not the same as listed online. There’s also a chance of getting a unique product.
If you want a stable deal, don’t go for the photos instead go for the reliability of the seller. Just by adopting this habit, you can save a lot of time by eliminating irrelevant sellers. After short-listing the sellers, you can visit the property yourself to make sure you are getting what they promised.
Cost
Buying a commercial space or a house is a costly venture. Buyers and sellers both are cautious about the listing price. When it comes to buying and selling the property, it requires time before finalizing the deal. It doesn’t happen on a whim. Sometimes it takes months to sell a property. In such cases, it is recommended to get a real estate agent to help you out. An agency can take care of all the related works such as finding the property, negotiating, paperwork, and also closing the deal.
A real estate agent is a professional which means he is proficient in dealing with commercial properties. Signing up an agent makes everything quick, easy, and cost-effective, especially if you are inexperienced and new in the market.
Killer Deal Dilemma
Nowadays, everyone is aware of the phrase “Killer Deal”. It is frequently used on most eCommerce websites. There is no surprise such deals are hard to ignore and most of us end up buying.
Besides eCommerce websites, property sellers also use this phrase to lure potential customers. If you think you got a “Killer Deal” for commercial property with no rework – think again. It is rare to find a cheap coworking space with no additional work.
Here are a few things you should consider before grabbing “killer deals” –
Take a walk – avoid purchasing a property right away. Make sure the building you are buying has a stable foundation, construction, etc.
Property Inspection – Do not neglect property inspection! Avoiding inspection might cost you extra in the future.
Fast- fingers on Calculator – if there’s something to repair in the building quickly calculate the cost and make a decision after that.
Final Thoughts
Dealing with commercial real estate properties is complex, especially for newcomers. If there is misleading information, then there are reliable pieces of information as well. Now that people are getting more aware of these things, expectations are getting closer and closer to reality.
