Succeed in Commercial Real Estate: Know the Zone
If you are thinking about getting started in commercial real estate, but don’t know where to begin, remember that the difference between making it and breaking usually comes down to having the right information at your fingertips. Commercial real estate can be confusing, but when you know where to find the right insights, you will succeed.
Many real estate agents make a fatal mistake when it comes to working with commercial real estate. They fail to research the zoning laws in their market area. Few areas of real estate law are more complicated than zoning. One reason for this is that laws and ordinances are drafted by politicians who may have a very different set of goals from the business and real estate communities.
Whether you are dealing with developers or investors, zoning laws can create a long list of headaches for everyone involved. If you help your client understand what a property can and cannot be used for, it will save both time and money and that will add to your credibility as an agent! The more credible you appear to be, the more likely you will be to receive referrals from satisfied clients!
Zoning laws have scuttled more than one worthy real estate project simply because the agent didn’t know or disclose the acceptable uses to the potential buyer. It is as important to accurately represent a property to the buyer as it is to explain that zoning to the property owner.
Knowing whether a property is located in the city or county can determine whether that land is appropriate for development. Knowing setback requirements, the allowable heights and density rules can be the difference between a property being buried in a stack of possibilities or rising to the top of the list. Something simple like parking requirements can often make or break a sale.
When it comes right down to it, you owe it to yourself to research zoning laws in your target market. Try attending the planning and zoning meetings for your area. Talk to the members and learn about the significant issues that the area faces. Make allies.
Success in commercial real estate often depends on accurately researching your target market. Knowing where to look for that information is sometimes very confusing. When all is said and done, it only makes sense to familiarize yourself with the zoning laws that impact the properties in your target area.