- Real Estate
4 Things to Consider when Comparing Commercial Property Prices
As a retail investor, you want to make sure that you’re getting the biggest bang for your buck. But what does the biggest bang look like? The well-known slogan of the real estate industry, “location, location, location,” covers one aspect of it, but what else should you look for? When you’re sorting through a list of various commercial property prices, here are a few things to keep in mind.
Don’t Judge a Building By Its Appearance:
These days, many fail to realize that there is a large distinction between the man-made, improved portion of a commercial property and the land on which it sits on. Appreciating land as the asset is important for one simple reason: limited supply. If you’re buying a decadent, fancy-looking commercial property that sits on land comprised of instable soil, you’re going to run into troubles later down the road.
Oh, The Places You'll Go!
Location, Location, Location
Based on your planned use for the property, making sure that the location is suited to your needs is highly crucial. Examining the setting of the property will hint at the environment you’ll be embodied in. Those in urban areas might pose to be of higher price but you might need the metropolitan amenities which would make the investment a worthy one.
Don’t be Deceived by Images
Take the time to examine each and every inch of your property. If you’ve only been viewing it from a computer screen, the price might not accurately reflect the value. Ask questions to ensure that the building foundation is stable, the walls are made of quality wood, etc.
Style and Physical Appearance
If the style and appearance of the property is already well suited to your needs you can cross that out of the out-of-pocket-costs list. If not, you might have to add a few hundreds or thousands to that listed selling price. Saving a little money here and there by ensuring that the style already meets your requirements can also save time and headaches.
It’s easy to believe that the price is synonymous to its value. It’s not, and doing a little investigation will point you into the right direction as to which property will be better suited to your needs. Save yourself the time and money by keeping the previously discussed things in mind.