Buying Residential Real Estate Vs. Buying Commercial Real Estate
Buying commercial real estate is very different from buying residential real estate. The main difference is in the thought process you go through when making the decision. Here is what each of the different purchases requires being taken into consideration:
Residential Real Estate:
- Buyers look for an emotional or sentimental attachment to a property as that is where they will be sleeping, eating, and living.
- Buyers also look at their own personal budget. This means considering the price and the monthly mortgage payment. Buyers usually look for prices that allow them to keep their standard of living and something they can afford.
- This is also considered when buyers are looking for a vacation home or a property to increase or help their investment portfolio. Basically residential real estate is sought out for someone’s personal gain or use.
Commercial Real Estate:
- Commercial real estate centers on businesses and their profit from the real estate they are buying. It is all about numbers.
- Buyers look at their potential rate of return and whether or not the space will meet the needs of their business.
- Commercial real estate will also have different agents and brokers that a buyer will have to go through rather than when they buy residential.
Overall, the difference is in the purpose. If you are buying for personal uses that require an emotional attachment, then seeing a residential real estate agent is the way to go. If you are a business owner or a business representative looking for an investment or space for your business, then you need to see a commercial agent or broker. The processes are similar but the purposes are different.
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