Commercial Real Estate Sales
Why sell commercial real estate versus residential real estate? Sounds like a simple question, it would be nice if there was a simple answer, and perhaps there is.
Residential real estate sales are time consuming, based more upon emotions than facts, and it depends more upon the ability of the borrowers than the financial prospects of a building.
Residential sales will fluctuate with the rise and fall of interest rates, and most of the sales will be for homes, not investment.
Residential real estate transactions will almost always demand that you are on duty 24/7. Your sellers will call you on the weekend and in the evenings to see why their home isn’t sold yet. Your buyers will do the same only they will want to know why their escrow isn’t closed yet.
There is more handholding in residential sales. People are buying or selling their home. It’s nerve wracking for many people, especially first-time buyers. You take a deep breath and help them through the anxiety, and in the end, you help them celebrate their new home. It’s a great feeling.
So, what is different about the role of a commercial real estate broker? A lot. Commercial real estate can get emotional sometimes, but for the most part it’s all about the numbers. Commercial buyers aren’t so worried about granite countertops, school performance and a great back yard.
Commercial buyers are concerned about Return on Investment, Cap Rates, location, and rental income. Yes, they probably want a nice looking building, but that’s not the first thing they are concerned with. As a commercial listing agent, there is more you will need to know, and the information isn’t as readily available as the date on residential real estate.
As someone who sells both residential and commercial real estate, I feel that one takes longer and a more concerted effort over a longer period, but in the end will earn more money. The other may take less time but will not return the same type of income.
Both are great careers where we serve our clients well, hopefully, and if you are someone who likes dealing with facts and figures and helping clients make good decisions in order to produce a continuing revenue stream, then give me a call, and we can discuss why becoming a commercial realtor might just be for you.
Alan J. Chane
SPECIAL ANNOUNCEMENT FOR COMMERCIAL INVESTORS: The Chane Sells team currently has listed a choice piece of property that is situated within the Florida Qualified Opportunity Zone. To learn more about the potential tax advantages available with this exciting property, click here.