Buying Commercial Real Estate
If you are investing, downsizing, expanding, relocating, or buying your 1st commercial property, MYRE, LLC. has knowledgeable sales associates to help you with every step of your Commercial Property acquisition. Our associates understand that you have specific needs and objectives and will work very hard to meet your expectations.
Why Choose MYRE, LLC.?
1. Knowledge: When searching for commercial real estate there are a limited number of resources available to assist buyers in locating potential properties. Our broker & associates have availability to various resources and up to date information to locate prospective properties that will meet your needs. We understand the importance of staying current with market trends and changes.
2. Experience: Buying commercial real estate can be complex without employing an experienced real estate broker and finding the right commercial property takes time, knowledge and experience. MYRE, LLC. can assist you through the entire process of buying commercial real estate and we know what it takes to get the job done!
3. Training: Our broker and associates receive additional training and designations by attending real estate courses and staying updated, educated and informed concerning current changes in the commercial real estate industry.
4. Cost & Time: Engaging the services of My Real Estate Expert, LLC. (MYRE, LLC.) will save you time and money. In commercial real estate most of the properties are listed with a commercial real estate firm and already have in place a commission agreement. Under these circumstances the commission or compensation is already established and built into the sales price. It is customary for a broker to split commissions with cooperating brokers representing a buyer. If the property does not offer broker cooperation or if the property is a for sale by owner (FSBO), the broker’s compensation will be defined in the Buyers Representation Agreement. To find the exact property can take time and time is money. Our knowledgeable team will utilize our commercial real estate resources to locate a suitable property that fits your needs, conduct successful negotiations and lead you through the closing process.
5. Preparing an Offer: Once you have located a commercial property your agent will walk you through the process of submitting an offer to the Seller. It is very important to conduct a Comparative Market Analysis (CMA) to arrive at a price that gives your offer the best chance to be accepted. Your MYRE sales associate will also assist you in preparing an offer that perpetuates your interest using specified terms and conditions.
6. Negotiations: A very important step in buying commercial real estate is negotiating the right price. To achieve a successful negotiation can be overwhelming and stressful. We are professional negotiators and will relieve you of this stress by acting as a buffer. It is important that the buyer not become too emotionally attached to the commercial property during negotiating. The buyer should always be prepared to negotiate.
7. Due Diligence Period and Checklist: Once a buyer’s offer has been accepted there will be a due diligence period to conduct a property search, obtain reports, inspections, financing, appraisal, and survey. We have composed a list of information that you should obtain during the due diligence period.
Due Diligence Checklist:
Title: When buying commercial real estate we recommend always closing through a reputable title company. The title company will make sure that there are no liens on the property and will conduct all of the research pertaining to present ownership. We also recommend using an escrow agent. The fees to the escrow agent are very minimal and they will make sure that both parties are abiding by the terms of the contract.
Survey: In order to evaluate the property a buyer will need to order a commercial survey. A professional and reputable surveyor will identify potential problems and locate any easements or encroachments on the specified property.
Inspection: A qualified and professional building inspection is necessary to ensure the quality of construction and that the building is in good condition. The inspection should be conducted by a certified third party who is qualified to conduct commercial property inspections. The inspector will not only be conducting a structural inspection he will also be focusing on any regulatory or statutory violations.
Environmental Inspection: When buying a commercial property most lenders will require at least a Phase I study. If the Seller has a recent report within 12 months the lender may allow this report to be certified and updated to themselves and to the new buyer. This report will assist the buyer and lender in defining any environmental issues or liabilities. If the property shows any evidence of contamination, a Phase II report will be ordered by the buyer and or lender at their discretion.
Zoning: Investigating the current zoning and land use should be confirmed and verified to conform to the allowed uses. The property should also be investigated for current violations or potential violations considering buyers intended use. The commercial property should also be researched for the possibility of future zoning.
Lender: An important component to procuring commercial real estate is a good working relationship with a lender who has a strong track record of closing properties. You may also employ a mortgage broker to find the best deal in the market place. It is crucial to find a lender best suited for your particular deal.
Closing: The final step to commercial property ownership is a detailed closing statement or settlement statement usually conducted with a reputable title company at closing. The closing statement will summarize all fees for the Buyer and Seller involved in the transaction. Property ownership will transfer from the Seller to the new Buyer at closing.
My Real Estate Expert, LLC.