Professional leasing agents save you time and money. Ask fellow business people to recommend a commercial real estate agent who helped them. A real estate agent who specializes in commercial leasing will have knowledge of the local market and can help you find the right space that fits your budget and your time frame. That agent can represent you, the tenant, and guide you through the process that may not be totally familiar. Fees are paid by the landlords.
Both types of REALTOR® receive their basic certification from the same body. The differences are a matter of additional training, usually through an on-the-job mentorship program. Residential REALTORS® sell houses. Commercial REALTORS® deal with commercial and investment properties of all types. They have a unique contact base, skill set and experience and work in a market different from residential REALTORS®. They are better equipped to bring a deal to a successful closing. Look for a commercial REALTOR® with knowledge, experience and reputation in their local market to look after your best interests
Done right, investors stand to reap big rewards over the long haul. To simplify, we will consider only the financial perspective here in 2 key factors. Cash flow and equity. Cash flow is crucial to monthly operations at the property and is where you should see fairly immediate returns. It is important to ensure the property’s income covers costs and then some. A prudent investor will bank a portion of these funds to hold as a reserve for when significant expenses arise at the property (they will).
The equity in the property is the difference between what the property is worth and what you owe against it. You can gain equity in your property by appreciation (rise in market value over time), by paying down your mortgage or immediately by investing in a property that is undervalued, under-rented or where the opportunity exists to do upgrades (sweat equity). In short, look for positive monthly cash flow, likely equity growth over time and the opportunity to earn additional equity on the short term. Call me anytime to discuss!
You most certainly can and sometimes you should. However, if you are lucky enough to get someone who works hard for you and gains your trust, it may be in your best interest to stick with that person. Most salespeople work hard for loyal clients and will go the extra mile for you. That can result in seeing more houses, getting a better mortgage rate, getting a reasonably priced lawyer and assistance with changes connected with your move.
It is true, most buyers come from the Internet. Including the MLS®, it is great exposure for your property, an invaluable tool for the public as well as REALTORS®. Initially, a great deal of time is spent gathering details about your property. This data is vital to the selling process. Once a buyer surfaces, the real value of your REALTOR'® becomes obvious. While it's true that REALTORS® are trained professionals and expert negotiators, their truly exceptional attribute is their ability to manage a very complex transaction and deal with every detail from start to finish. You may think your REALTOR® should be busier trying to sell your property but keep in mind, a REALTORS® job doesn't end until your deal is closed. That's how they make the grocery money.
In our existing market and with the advancements of technology, pricing your property properly is CRITICAL. An experienced REALTOR® will do their research and based on their opinion, will suggest a list price. Most homeowners (myself included) feel that their property is actually worth a higher price than the market will allow so be aware of this potential error that could cost you a sale. Many properties can take weeks and even months to sell right now and you may need to lower your price in order to attract perspective buyers. If you have NO viewings or an abundance of viewings and NO offers, chances are your asking price is too high. Ask for updates and advice along the way!
By law we are not allowed to have a standard commission rate, however, generally speaking between 4% and 6% are the quotes you will get. Some offer less than that, and some relate the fee to the size of the deal. It is up to the salesperson to explain to you why he/she charges a higher rate than others. I have found that if one gets a good result in a timely manner that most clients are happy to pay whatever the agreed amount is. Commercial sales and leasing rates are different and can fluctuate wildly. Once again, it relates to the level of service.
Finding a tenant can be a challenge in today's market. You may want to try to find a tenant on your own by street signage and advertising, in print and on the Internet, or you may want the help of a professional leasing agent. If you don't want to list your property with a commercial agent, sometimes just making them aware that your space is available is a good enough place to start. You can establish what their fee would be in the event they find a tenant for you. If you opt to list your property, they take over the marketing of your space which can save you a lot of time, energy and frustration. They will also look after negotiating the offer to lease as well as all the details necessary for the new tenant. Commercial leasing agents deal with leasing prospects on a daily basis so they are more likely to come across a potential tenant for your space.
If your property is a multi-unit, it is best to have it full of tenants and receiving maximum rent when selling. Given the buyer will be purchasing it as an income property, the value is largely determined by the rental income.
If you have a single family home or duplex, the buyer may intend to move in to the house. In this case it is important to consider your existing tenants and their needs. The buyer will still be obligated to honour the terms of their lease.
If you are aware you will be selling within the next year, you may want to consider month-to-month leases. This will give you the flexibility to end a lease agreement with 30 days’ notice to the tenant, should your buyer want to move in immediately upon close.
~~If you want to put less than 20% down on a property, your mortgage will need to be insured. If you have an insured mortgage already, it is likely you will need 20% down plus your closing costs (budget for 2% of the purchase price) to purchase an investment property. Investment property that needs work to be rentable will require an additional investment. However, there are options to have this money incorporated into your mortgage financing, speak to your bank or mortgage broker. If you are looking to invest in property and don’t own a home already, this is a great opportunity to enter the property market with fewer dollars down by getting a high ratio mortgage (less than 20% down). Note, these are only your initial investment costs. A good investment property should bring enough income to cover expenses going forward. Whether or not you can afford this amount to invest up-front is something to consider carefully.
A buyer will usually include a deposit with an offer to indicate a serious interest in the property. The deposit is part of the purchase price and is an act of good faith. It is a negotiable part of an offer. The deposit is refundable if conditions set out in the Purchase and Sale Agreement cannot be satisfied. Once conditions are met, the property is declared sold and the deposit will be kept in a trust account until closing, but could be kept by the seller if the buyer is unable to fulfil his obligation to purchase on the agreed closing date.