Commercial and Residential Real Estate Michigan

A breakdown of what commercial and residential real estate is and how the two types of property differ from one another.

Local Companies

McPherson Mansion
810-599-5147
915 Michigan Ave.
Howell, MI
Cascade Realty Commercial
517-787-4557
PO Box 1728
Jackson, MI
Three West, LLC | Commercial Real Estate & Consulting
231-929-2955
4020 Copper View
Traverse City, MI
Naterra Land
(906) 358-4045
4692 US 45
Watersmeet, MI
Malan Realty Investors
(586) 741-0453
33822 S Gratiot Ave
Clinton Township, MI
Fodor Sandy
(734) 429-2200
212 E Michigan Ave
Saline, MI
Tdn Real Estate Appraisals
(810) 244-6444
6070 Fenton Rd
Flint, MI
Graham Thomas
(231) 526-6573
187 E Bluff Dr
Harbor Springs, MI
Fox Real Estate Inc
(906) 644-2134
9237 00.25 Rd
Cooks, MI
Rea Realty Group
(586) 336-7342
71050 Van Dyke Rd
Bruce Twp, MI

Success as a Real Estate Agent For Dummies

Adapted From: Success as a Real Estate Agent For Dummies

Comparing commercial real estate to residential real estate is like comparing apples to oranges. Both are from the same genre, but that is where the similarities end. The following are general descriptions of the two types of real estate:

  • Commercial real estate is business-focused. It involves property that is sold, leased, or used to achieve a predetermined business objective. It's used as an investment to achieve an anticipated rate of return on the funds invested.
  • Residential real estate revolves around the wants and needs of a homeowner and his family. It involves property purchased for individual use, most often to provide housing for families.

The selling process for commercial real estate hinges on numbers and return-on-investment calculations. Residential real estate is nowhere near so cut-and-dried because it's more of an emotional purchase. Many buyers make decisions based on the fact that the house just feels right to them. The key factor is the return on investment.

What is residential real estate?

Residential real estate is focused on personal use. For the most part, residential agent's represent the buyers or sellers of single family, primary homes. Within the residential real estate arena, agents also engage in the following specialties:

  • Selling secondary homes to people seeking a "home-away-from-home" to get away from it all. The second home market is one of the fastest-growing segments of the residential real estate arena. More than 21 percent of the sales in 2004 were second home purchases for use by the purchaser or for investment purposes.
  • Working exclusively for a builder of new homes, usually by serving as the on-site salesperson for a new home community. In this role, the agent sells only the builder's homes. If buyers need to sell an existing home outside of that community, usually another agent handles that sale.
  • Representing residential real estate investors who are looking to increase wealth through the ownership of homes, duplexes, triplexes, and fourplexes. Small-scale multiplexes are handled by residential rather than commercial agents for the following two reasons:

• Often the purchaser lives in one segment of the multiplex, creating a residence as well as an investment property.

• Usually a purchaser can buy up to a fourplex with a conventional mortgage.

    Residential agents rarely represent buyers or sellers of multiplexes with more than four dwelling units. Purchasers of larger complexes must qualify for and secure commercial real estate loans — which involve a more restrictive set of conditions, including higher interest rates, shorter amortization schedules, and considerably higher initial equity positions or down payments.

What is commercial real estate?

Commercial real estate centers on business or investment use of real estate.

In commercial real estate, you can buy, sell, lease as a lessor (the person who owns the property for lease), lease as a lessee (the person who's trying to lease the property for their use), syndicate, joint venture, develop, option, and invest in a wide range of commercial real estate categories, including retail, office, industrial, apartments, investments, and raw-land leasing.

Commercial real estate agents are usually familiar with many of the commercial real estate areas, but they generally specialize in one of the following areas or disciplines:

  • Representing tenants or lessees by finding, selecting, and negotiating new space for client businesses.
  • Representing building owners or lessors by working to lease out building space for the highest possible price and with the most favorable terms. Frequently a commercial agent represents one owner or even one building exclusively in order to ensure the building is leased to capacity.
  • Representing investors who want to buy and sell commercial property by finding opportunities that offer the lowest risk to the client, the best return on investment, and the best capitalization rate, which is the net operating income of the property divided by the sales price or value of the property.

provided by:


For Dummies is a registered trademark of Wiley Publishing, Inc. in the United States and other countries. Used here by license.


Featured Local Company

McPherson Mansion

810-599-5147
915 Michigan Ave.
Howell, MI

Regional Articles
- Commercial and Residential Real Estate Adrian MI
- Commercial and Residential Real Estate Allegan MI
- Commercial and Residential Real Estate Allen Park MI
- Commercial and Residential Real Estate Alpena MI
- Commercial and Residential Real Estate Ann Arbor MI
- Commercial and Residential Real Estate Auburn Hills MI
- Commercial and Residential Real Estate Battle Creek MI
- Commercial and Residential Real Estate Bay City MI
- Commercial and Residential Real Estate Belleville MI
- Commercial and Residential Real Estate Benton Harbor MI
- Commercial and Residential Real Estate Berkley MI
- Commercial and Residential Real Estate Big Rapids MI
- Commercial and Residential Real Estate Bloomfield Hills MI
- Commercial and Residential Real Estate Brighton MI
- Commercial and Residential Real Estate Burton MI
- Commercial and Residential Real Estate Cadillac MI
- Commercial and Residential Real Estate Canton MI
- Commercial and Residential Real Estate Cheboygan MI
- Commercial and Residential Real Estate Clarkston MI
- Commercial and Residential Real Estate Clinton Township MI
- Commercial and Residential Real Estate Clio MI
- Commercial and Residential Real Estate Coldwater MI
- Commercial and Residential Real Estate Commerce Township MI
- Commercial and Residential Real Estate Comstock Park MI
- Commercial and Residential Real Estate Davison MI
- Commercial and Residential Real Estate Dearborn Heights MI
- Commercial and Residential Real Estate Dearborn MI
- Commercial and Residential Real Estate Detroit MI
- Commercial and Residential Real Estate Dowagiac MI
- Commercial and Residential Real Estate East Lansing MI
- Commercial and Residential Real Estate Eastpointe MI
- Commercial and Residential Real Estate Eaton Rapids MI
- Commercial and Residential Real Estate Escanaba MI
- Commercial and Residential Real Estate Farmington MI
- Commercial and Residential Real Estate Fenton MI
- Commercial and Residential Real Estate Ferndale MI
- Commercial and Residential Real Estate Flat Rock MI
- Commercial and Residential Real Estate Flint MI
- Commercial and Residential Real Estate Flushing MI
- Commercial and Residential Real Estate Fort Gratiot MI
- Commercial and Residential Real Estate Fraser MI
- Commercial and Residential Real Estate Garden City MI
- Commercial and Residential Real Estate Gaylord MI
- Commercial and Residential Real Estate Gladwin MI
- Commercial and Residential Real Estate Grand Blanc MI
- Commercial and Residential Real Estate Grand Haven MI
- Commercial and Residential Real Estate Grand Ledge MI
- Commercial and Residential Real Estate Grand Rapids MI
- Commercial and Residential Real Estate Grandville MI
- Commercial and Residential Real Estate Grosse Pointe MI
- Commercial and Residential Real Estate Hamtramck MI
- Commercial and Residential Real Estate Harper Woods MI
- Commercial and Residential Real Estate Harrison Township MI
- Commercial and Residential Real Estate Hazel Park MI
- Commercial and Residential Real Estate Highland Park MI
- Commercial and Residential Real Estate Hillsdale MI
- Commercial and Residential Real Estate Holland MI
- Commercial and Residential Real Estate Holly MI
- Commercial and Residential Real Estate Holt MI
- Commercial and Residential Real Estate Howell MI
- Commercial and Residential Real Estate Hudsonville MI
- Commercial and Residential Real Estate Inkster MI
- Commercial and Residential Real Estate Ionia MI
- Commercial and Residential Real Estate Jackson MI
- Commercial and Residential Real Estate Jenison MI
- Commercial and Residential Real Estate Kalamazoo MI
- Commercial and Residential Real Estate Lake Orion MI
- Commercial and Residential Real Estate Lansing MI
- Commercial and Residential Real Estate Lapeer MI
- Commercial and Residential Real Estate Lincoln Park MI
- Commercial and Residential Real Estate Livonia MI
- Commercial and Residential Real Estate Ludington MI
- Commercial and Residential Real Estate Macomb MI
- Commercial and Residential Real Estate Marquette MI
- Commercial and Residential Real Estate Midland MI
- Commercial and Residential Real Estate Monroe MI
- Commercial and Residential Real Estate Mount Clemens MI
- Commercial and Residential Real Estate Mount Morris MI
- Commercial and Residential Real Estate Mount Pleasant MI
- Commercial and Residential Real Estate Muskegon MI
- Commercial and Residential Real Estate New Baltimore MI
- Commercial and Residential Real Estate Niles MI
- Commercial and Residential Real Estate Northville MI
- Commercial and Residential Real Estate Novi MI
- Commercial and Residential Real Estate Oak Park MI
- Commercial and Residential Real Estate Okemos MI
- Commercial and Residential Real Estate Owosso MI
- Commercial and Residential Real Estate Petoskey MI
- Commercial and Residential Real Estate Pinckney MI
- Commercial and Residential Real Estate Plymouth MI
- Commercial and Residential Real Estate Pontiac MI
- Commercial and Residential Real Estate Port Huron MI
- Commercial and Residential Real Estate Portage MI
- Commercial and Residential Real Estate Redford MI
- Commercial and Residential Real Estate Rochester MI
- Commercial and Residential Real Estate Rockford MI
- Commercial and Residential Real Estate Romulus MI
- Commercial and Residential Real Estate Roseville MI
- Commercial and Residential Real Estate Royal Oak MI
- Commercial and Residential Real Estate Saginaw MI
- Commercial and Residential Real Estate Saint Clair Shores MI
- Commercial and Residential Real Estate Saint Johns MI
- Commercial and Residential Real Estate Saline MI
- Commercial and Residential Real Estate Sault Sainte Marie MI
- Commercial and Residential Real Estate South Haven MI
- Commercial and Residential Real Estate South Lyon MI
- Commercial and Residential Real Estate Southfield MI
- Commercial and Residential Real Estate Southgate MI
- Commercial and Residential Real Estate Sterling Heights MI
- Commercial and Residential Real Estate Sturgis MI
- Commercial and Residential Real Estate Swartz Creek MI
- Commercial and Residential Real Estate Taylor MI
- Commercial and Residential Real Estate Temperance MI
- Commercial and Residential Real Estate Three Rivers MI
- Commercial and Residential Real Estate Traverse City MI
- Commercial and Residential Real Estate Trenton MI
- Commercial and Residential Real Estate Troy MI
- Commercial and Residential Real Estate Utica MI
- Commercial and Residential Real Estate Walled Lake MI
- Commercial and Residential Real Estate Warren MI
- Commercial and Residential Real Estate Waterford MI
- Commercial and Residential Real Estate West Bloomfield MI
- Commercial and Residential Real Estate Westland MI
- Commercial and Residential Real Estate White Lake MI
- Commercial and Residential Real Estate Wixom MI
- Commercial and Residential Real Estate Wyandotte MI
- Commercial and Residential Real Estate Wyoming MI
- Commercial and Residential Real Estate Ypsilanti MI
- Commercial and Residential Real Estate Zeeland MI

Rss   Delicious   Digg   Add To My Yahoo   Add To My Google   Bookmark   Search Plugin

Topics:
Advertising Family Home Services Real Estate Resources
Business Services Fashion Industrial Goods & Services Retail & Consumer Services
Career Financial Services Insurance Software
Cars Food & Beverage Internet Technology
Computer Hardware Franchise Legal Telecommunications
Construction Health Miscellaneous Trade Shows
Education Holidays Nightlife Travel
Entertainment Home Appliances Online Database Weddings
Environmental Home Electronics Pets World History