Commercial vs. Residential Real Estate

Commercial vs Residential Real Estate

Comparing commercial and residential real estate is like comparing apples and oranges. Other

than the two being in the same bracket of ‘real estate’, there are no real similarities between the two.

Commercial real estate is business focused. It includes property which is sold, leased, or used to achieve

a business objective. It’s an investment with an anticipated return. Residential real estate is property

purchased by for use by an individual, most commonly to provide housing for families.

Residential real estate is focused on personal use. A residential real estate agent will represent

buyers and sellers of single family homes. Within the residential real estate bracket, the agents will also

engage in the purchase and sale of secondary homes (such as lake houses or summer homes), working

exclusively with builders and developers to sell new properties as they are being erected, and

representing real estate investors who are looking to increase wealth through the purchase of homes or


Commercial Real Estate

Commercial real estate is focused on business use and investment. In commercial real estate,

you can buy, sell, lease, develop, option, and invest in a number of commercial real estate categories.

These categories include retail, office, industrial, apartments, raw-land leasing, and investments.

Commercial real estate agents are familiar with many of the commercial real estate areas, but generally

specialize in one area. These areas include representing tenants or lessees who need to negotiate leases

or find new properties, representing builders, and representing investors.

Residential Real Estate

So, how do you go about choosing the right residential real estate agent? How do you know the

commercial real estate agent you found on Google will be a good fit for your situation? Speak with the

agents. See what they know about your wants and needs in regards to your specific real estate situation.

Talk to other clients. Word of mouth is the most reliable way of gauging the effectiveness of an agent.

Look up the licensing of an agent online. It will give you a list of complaints or disciplinary actions which

could have been taken against that particular agent. Look at the agent’s credentials, as well. Some are

CRS (certified residential specialists) which are specialists in residential sales.

When choosing an agent for either commercial real estate or residential real estate, it is

important to trust them. They are helping you make a large purchase and you should respect their input.

Allowing yourself adequate time to find a real estate agent for your situation is imperative to make your

purchase/sale a breeze.

For more information about Residential and Commercial Real Estate, contact MT Real Estate.

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