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Posts Tagged ‘Property’

The Risks of For Sale by Owner

Saturday, September 26th, 2009

FSBO can be good in some ways. However, the process can also pose great risks not only for the seller but also for the buyer. To let you see the risks, here are some things to think about:

1. Since for sale by owner eliminates the service of a real estate agent, the seller will not have an access to the Multiple Listing Service. While they can avail of the service using the flat fee MLS, this would still cost them money.

2. Selling without an agent involves a very hard work. No one will be there to give you assistance and go for an extra mile to guide you with the process. Without their services, the sale of property may result into chaos.

3. Most sellers do not know what they are doing, especially the newbie in home selling.

4. The right pricing is not achieved. Some sellers, who are of course the owner of the house, may be too attached to their homes. Therefore, as they dispose their property, they may price their homes with consideration to their personal sentiments. Any emotional investment might be counted for in this case. That can be irrational. In fact, some of them may not know that proper pricing is achieved with the right comparison like use of Comparative Market Analysis. Thus, most buyers think their houses are overpriced.

5. Not all sellers are fully equipped with the knowledge of fulfilling their role in selling their house. This could result in failure to meet the stipulations in the purchase contract. As a result, buyers may end up filing lawsuits.

Everyone should face the fact that a successful home selling transaction cannot be achieved by a week’s work of research and consultation. Besides, most people do not have the time to do things on their own.

FSBO may give you one financial advantage and it is quite understandable why you want this. However, if you are less knowledgeable about how real estate works, it may lead to additional problems. Not to mention, houses may take forever to sell.

Commercial Real Estate Changes to Save Money

Thursday, July 23rd, 2009

There are a number of practical considerations to make when deciding if you should purchase a new piece of commercial real estate. While cost is a primary consideration, it cannot be the only consideration.

While some property may have a seemingly high purchase price, the benefits of the property in the long term may more than make up for the initial cost. The first step in this process is to weigh your current piece of commercial land against the benefits and costs of choosing a different piece of property.

For instance, the location of your commercial real estate could be in a high traffic area. This can come in handy when considering your advertising budget, since a sign on the building can essentially create a free, ongoing billboard advertising your business.

This kind of free advertising can be invaluable as time goes by for any sort of local business. You may also look for commercial property next to existing businesses with similar customers. This could be a great way to work with your neighbors to create a one stop shopping experience. That sort of foot traffic and the potential for window shopping could be just as valuable as a billboard or newspaper advertisement.

Next, you should consider the actual structure you are currently in and compare that to other locations in your area. Today, many pieces of real estate offer built in Internet lines, which may be a huge upgrade from your current location. Furthermore, modern buildings may offer ‘green’, energy efficient designs that will save you money as time goes by.

Finally, it may be time to judge how your current piece of real estate helps you in regards to efficiency. Does your current space fit your needs while leaving you room to grow in the future? Can your workers perform to the fullest in your current space?

An improperly designed commercial space can lead to an inefficient business. If your business relies heavily on shipping, it may help your overall business to find a piece or property closer to major shipping centers and traffic routes.

If you decide that your current piece of real estate is costing you and your business money, you should definitely consider finding a new home for you business. The first step is to find an experienced commercial real estate agent in your area. They will be able to help you gauge your needs and find property that will help your bottom line.