Should you sell commercial real estate or residential real estate? Difficult question to answer. There are advantages to both.
I handle both commercial and residential listings and sales, but the main focus of my career has been in commercial real estate. I would like to share with you some reasons why.
Commercial real estate is more about the numbers and less about emotion. Questions like, how much income does this property produce? How easily rented is it? Is the location good for foot traffic? Does it have enough designated parking spaces? Versus, does it have granite counter tops and stainless steel appliances and is the property in a good school district.
Commercial Real Estate involves properties such as office buildings, warehouses, hotels and manufacturing facilities. However, commercial real estate also encompasses properties which are somewhat residential in nature, but fall outside of the guidelines for residential buildings. In other words, homes which have more than four units, homes located in areas zoned for commercial development only, raw land which is zoned for commercial development and airports.
Commercial Real Estate agents need a full understanding of how commercial property will earn their potential buyer the income he or she will need in order to carry the property. They have to have an understanding of how showcase the property to it’s highest potential.
Selling a commercial property is not for the impatient. Putting a deal together can take months or even years. Which means in order to succeed, a commercial agent will likely need a few deals going simultaneously, and understand how to budget the money which comes in when the sale closes.
The upside potential is most commercial deals here in Vero Beach are likely to be in the mid-$600 range, up to a few million, whereas most residential properties here in Vero beach which are not on the ocean or the river will likely sell for around $250-$300 range.
While the commission checks will be larger, the lead time will be longer.
If you are an agent currently weighing the pros and cons of Commercial Vs Residential Real Estate, give me a call, lets set up a time to chat. I can offer some advice, and you can make your decision from there, or we can talk some more.