Businesses searching for suitable premises usually prefer to rent. However, as a first-timer, you may come across specific circumstances that call for buying land and constructing your premises from scratch rather than renting an office space. That’s because purchasing a property helps you enjoy higher flexibility and freedom. But wait! What about legal and financial aspects? Did you give it a thought?
Undeniably, searching for a commercial property that best suits your business requirements can be a tough game. But you can tackle all issues that come your way if you know all the nitty-gritty details of buying a property for your business. To make this one-time investment easier, below are some considerations you should make:
Find Out about the Location
You want to build your business. That’s why you’re actually interested in buying land. You have assigned the entire construction task to a credible civil engineer. The result is an amazing office building! But what if you plan to move your business to another region after a few years? Of course, you’d want to sell your property off for a worthwhile price.
To make this possible, make sure you buy land that’s in an ideal location. So even if you plan to sell this commercial property, you can attract interested buyers easily.
Conduct a Detailed Market Analysis
Many businesses start off buying property with the aim to sell it later. And of course, at a higher price. However, they end up carrying out their business operations from the same premises. This happens when the value of their property doesn’t increase according to their expectations. To avoid getting stuck in this situation, carry out a market analysis before you even choose the land. This is a surefire way to determine the market value of your property. Don’t be tempted by out of the way cheaper parcels of land. Even if they suit your current budget, they will not necessarily fit the same needs of a future potential buyer.
Based on this detailed market analysis, if the value of your property appreciates in later years, you’ll be better able to decide if it’s feasible to move your business to a bigger space.
Inquire If the Land Is Available As Commercial Property
Just because land is located nearby a commercial area, people may assume that it’s available for commercial purpose. But what if it’s actually a residential plot and, out of misunderstanding, you constructed your office building on the same land?!
Misunderstandings like this could lead you to face serious problems in the future. Therefore, while buying a commercial property, always keep in mind that there’s no room for assumptions! To avoid any such confusion, evaluate the property before making the transaction. Get professional advice. Visit the local administrative land offices and seek the right assurances on the land classification.
Do You Want to Expand?
If you think that the current premises aren’t fulfilling the growing capacity of your business, then it’s a good idea to look for some more space. Initially, you’d want to invest in a commercial property that seems to be a good fit for your business needs. But as your business grows, you’ll find that you need a bigger space. Be proactive and find out if there’s any expansion potential. For instance, if you’re buying land to build your business but you still want an expanded space, then you can rent a commercial building that’s located right next to the property you plan to buy.
Carry Out the Documentation Process Carefully
Be on the lookout for fake documents. People unknowingly end up becoming victims of buying commercial properties which aren’t genuine. Of course, you’d never want to be a similar victim of any dispute! However, here’s the main concern: people misuse technology to create fake documents that closely resemble the original documents. That’s why you should be wary of fraudsters while ensuring that all documentation is crystal-clear.
Hire a Real Estate Lawyer
Since purchasing a commercial property requires you to focus on various aspects while ensuring that the entire process of the transaction goes smoothly, it’s always a wise decision to seek the help of a professional real estate lawyer.
Experienced in helping businessmen purchase land, lawyers can assist you and represent you as the buyer of the commercial property. Besides this, they will help you devise relevant contingencies while making an offer. Along with being responsible for conducting a closer inspection of the land you’re interested in buying, other duties of your lawyer include providing suggestions and useful information about deed restrictions, zoning issues, and any doubts related to the title.
The Bottom Line
Making the one-time expense of buying land that suits your business requirements is a challenging decision. Why not simplify the entire process by following some pre-defined guidelines that are worth the effort? Even if you’re a startup founder who wants to build a business on commercially-owned land, you can smooth things out by strengthening your basic knowledge of purchasing commercial properties.
About the author: Demi Newton works as a surveyor within the commercial property industry. Her informative articles can be read mostly on business advice blogs.