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Buying or Selling a Home/Residential 1 Commercial 2 Zoned

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Expert: - 7/11/2009


Question
I purchased this property about 8 years ago. It is located on a major highway. It was an investment for me. I knew in the future my property would become more commercial than residential. I could purchase at a residential cost and sell ay a commercial cost. That time has come. I have an interested buyer. Both properties on each side of me are now commercial. My problem is that I cannot find any good comps, with the exception of the property that just sold next door to me. It has the same lot size but the house was completely renovated and mine is not. I have more square footage and a separate income apartment on my property. I am lost as to what I should price it at on a commercial basis. Can you give me any advice

Answer
Hey, Melany.

Your problem is quite common, and there are two things you can do:

(1) Have it appraised. A good appraiser will know how to make adjustments for lack of comps and other differences such as renovation, square footage, and income apartment.

(2) Have it priced by a good Realtor, preferably one who has worked in commercial for many, many years. That Realtor will be just like the appraiser and know exactly how to make adjustments.

Hope that helps.

Russel

Buying or Selling a Home

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Russel Ray

Expertise

Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

Experience

Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego

Education/Credentials
Graduate of Texas A&M University; College Station, Texas

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