By virtue of their purchasing experience, homeowners have
necessarily become familiar with the basics of real estate. A Charleston
homeowner may not consider her- or himself an expert in the matter, but history
does allow them all to share a degree of confidence in real estate markets and
the factors that are important when it’s time to make a buy or sell decision.
Real estate is real estate, after all — whether it’s here
in Charleston, SC or anywhere else, right? Not exactly. Commercial real estate
is a horse of a different feather!
If you are thinking about buying commercially for the
first time, understanding not only that there are differences from the
residential market, but how those influence the other buyers and sellers (they
make up the ‘market,’ after all) will be good preparation when the time arrives
to put together a solid offer.
From a purely ease-of process perspective, buying a piece
of commercial real estate in Charleston, SC is substantially more involved than
buying a typical residential property. Though not always so, there are more
opportunities for extra complications: lien and title issues, rules about
hazardous materials, and zoning considerations are just some.
The language used in real estate documents for commercial
properties can be complicated and obscure, so of course it’s especially useful
to coordinate with an experienced Charleston commercial real estate agent.
Due to lending costs, a commercial property that is the
same size as a residential one will usually be more expensive. You can still
buy residential homes in the 3.5% range via an FHA loan, but banks are often
(rightfully!) stringent about lending on commercial real estate purchases.
Expect stricter qualifications and more money down. That’s due to the risk of
doing business: the potential to make money with a commercial property is
greater than with a residential property — but the risks associated with owning
it are also higher. Needless to say, it’s valuable to keep those risks in mind
when evaluating any commercial real estate purchase.
Interested in selling your
Charleston area home? Visit: www.jeffcookrealestate.com
Interested in buying a Charleston
area home? Visit: www.discovercharlestonareahomes.com
-Jeff Cook
Jeff Cook Real Estate
Charleston, SC
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