Commercial vs. Residential Real Estate

Posted by Premier Commission on February 25, 2015 in Commercial Real Estate, Residential Real Estate, Selling Real Estate

Commercial real estate is all about generating income. Whether your client wants to sell or buy multiple family units, retail space or industrial property, he or she wants to generate income.  Residential real estate focuses on the individual living in the property. Thus, when a client is interested in buying or selling residential space, it’s all about the long-term goals of residing in one area.

As you can tell, there are several obvious differences in commercial and residential real estate. There are just as many approaches to selling both types of real estate. Choosing the wrong approach can leave you stressed out and your clients looking for another real estate agent, but choosing the right approach can increase your credibility and bring in new clients.

Tips on Selling Commercial Real Estate

You can’t always rely on a list of potential buyers when it comes to commercial real estate. When you are selling residential real estate, you may have some potential buyers that you can bring to the property or connect with other agents who may have buyers at the ready. Unfortunately, there isn’t always a network of people ready and looking to buy or lease retail or office space. Even though you aren’t working from a list of potential buyers, there are two things to remember:

• Residential real estate generally takes less time to sell than commercial properties. That doesn’t mean you have to be resigned to a slow start selling your commercial property. Just be prepared.
• Commercial real estate is still about building relationships, something it and residential real estate have in common. You have to build a relationship with clients and customers to sell the property in a timely and trustworthy manner.

Make sure you have enough money in reserve to weather any commercial selling draughts. You’ll definitely need some cash flow to get started selling commercial real estate, so be prepared. Some agents choose to obtain a real estate commission advance to help keep their finances on track.

Tips on Selling Residential Real Estate

With residential real estate, you can often depend on referrals to help you make that big sale. Referrals involve the client’s relatives and family. Typically, this gives you a foundation to generate leads.

Focus on personal use. Sometimes prospective customers can’t see the “big picture” when it comes to residential real estate. To make the sale, you must focus on showing them why the property fits their lifestyle.

In residential real estate, many agents decide to put all their hard work and energy into marketing and selling a property, but must wait until the closing date to receive their commissions. In some cases, you may need an advance to keep you going until that commission arrives.

There are big differences between selling commercial and residential real estate. As you sell more and more of each type of property, you should begin to understand the pros and cons of selling each and which type of real estate suits you best. In either case, Premier Commission is here to help you get your commission when you need it so you can keep selling.

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