Buying property of any kind, especially commercial property, requires the right team of real estate agents in Gulfport MS. There are several reasons to purchase commercial real estate in Gulfport MS. The land can be used to expand and grow a business, be used for future developments, or as a first physical property for a new business. Even those with experience buying residential property should never underestimate how much more planning and research goes into buying commercial land. The process takes more time and effort.
How to Buy Commercial Land
Step 1: Get a Good Realtor®
Get in touch with a good Realtor® in Gulfport MS to begin the process of finding the right property and acquiring it. One reason that finding good commercial real estate in Gulfport MS is more difficult is because there are fewer resources available to buyers looking for properties. That’s why buyers need a good real estate agent. They have all the tools and connections necessary to find a good piece of land. A good Realtor® is one that keeps up with all the latest changes and trends in the current market and overall industry.
Step 2: Find the Right Property in the Right Location
It is up to the individual buyer what constitutes the right property at the right location for them. Buyers should inform their Realtor® about the size, intended use, zoning type, potential locations, necessary utilities, and preferred condition for the property they want. Realtor® uses the information to find the ideal piece of Gulfport MS real estate for clients.
Step 3: Get Pre-Approved
There are some similarities between commercial and residential real estate. The importance of the pre-approval letter is one of them. Before buyers can consider making an offer on a property, they should first obtain the necessary Pre-Approval letter from their bank or lending institution. Taking the time to obtain this letter and be pre-approved for a loan/mortgage will give buyers much more leverage at the negotiation table while also giving them a better idea of what they can reasonably afford.
Step 4: Make the Offer
After buyers identify the Gulfport MS real estate that they want, it’s time to call in a land valuation and Land Information Memorandum. These reports are an important part of the commercial property buying process. They give a buyer a lot of insight into the true value of the land that they are considering. It helps them to make an informed decision about whether or not to purchase the land.
It’s also worth considering a Comparative Market Analysis (CMA). This is a tool that realtors have to further inform buyers and help them make a smart choice. Any offer that a buyer does ultimately make should include any specific terms and conditions that they consider essential. Be sure to have an attorney read through all documentation before submitting an offer for real estate of any kind – commercial or otherwise.
Step 5: Enter Negotiations
The negotiation phase is one of the most important in commercial real estate. It is difficult and stressful to enter negotiations. This is when buyers can rely on their realtors to help. Realtor® are all trained professional negotiators. They assist buyers by working as a buffer between them and the seller. They can negotiate on behalf of their client.
Buyers should avoid becoming emotionally attached to a property before and during negotiations. One must always be willing to negotiate and even walk away if the terms aren’t favorable. Having an emotional attachment to the property makes that difficult, if not impossible.
Step 6: Acceptance and Due Diligence
If all goes well, the buyer’s offer will be accepted. At this point, there comes a due diligence period. This is where many important things happen, such as a title search, environmental study, inspection, financing, zoning permit review, property appraisal, survey, and other inspections. It is an important part of the process that must not be overlooked. There’s still the potential for something to go wrong even this late in the game.
Step 7: Closing
Assuming no problems are discovered during the due diligence phase, and everything can proceed, it’s finally time to close on the commercial property. The final part of acquiring commercial property is the HUD-1 settlement statement. This document is prepared by a title company before closing. The closing statement includes a summary of all fees involved in the transaction for both parties. When everything is said and done, property ownership is transferred from the seller to the buyer.