Commercial Buildings for Sale – Purchasing Case Studies
In this blog , we will discuss real time – real experience in purchasing commercial buildings in Austin or anywhere in the United States. Most buyers may feel that a purchase of a commercial building is a fairly straight forward process, that starts with an internet search, a call to the listing agent , seeing the property and then making an offer. Although fundamentally that is only part of it, it is much more complicated than it seems and a Buyer can and may get into trouble without the help of a commercial real estate broker.
Not So Fast , Not So Easy My Friend
Without a doubt, there are a lot of moving parts in a commercial building transaction , the most important part may not be just setting up a purchase contract and an offer but the actual due diligence or feasibility period that is required and what the outcomes are when this takes place. In markets that are tight, finding the right commercial building can be a major chore in itself, we have had clients come to us that have been looking for months. During tight markets , a buyer has to be more flexible and more versatile, so they can find the right property. Whether it is a warehouse or an office space, if the supply demand equation is tipped in the Seller’s favor the whole dynamic changes. Tools exist that allow realtors (for residential) and commercial real estate brokers (in this case) to find properties much easier than an individual looking for solutions on their own.
Snapshot of what can go wrong ?
With all the the professionals that are involved in getting a purchase to close, there are many things that can go wrong and if they do not come out in the favor of the buyer, the buyer needs the expertise and knowledge of the professional to help them move things along. Here is a case in point, a client of ours was purchasing a warehouse, the supply was very tight but we did find him a warehouse property and we put it under contract. At the 5 yard line, the survey came back and the lender did not like it , there were set back issues and it had to be cleared. The commercial realtor who represented the seller worked their tail off with the county to try to get a variance along with the great help of the Title company that we brought into the transaction gave some good advice. Also some options were developed thru the lender. So when a purchase of a commercial building happens , a buyer will have these professionals involved in the transaction :
- Surveyors , Inspectors
- Insurance companies
- County and City municipalities
- Deed restrictions
- Title companies
- Seller’s agent
- Buyer’s agent
Any of these professionals can throw up obstacles or be an aid for a buyer either buying commercial buildings, looking at a commercial building project or even a retail pad site. The key is , do you as a buyer have the professional on your side to help you make the process become more seamless?