Negotiation process for homes, commercial real estate

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1. You are differences between the process of negotiating a commercial real estate transaction and negotiating a residential real estate transaction. Your brother says "the process of negotiating my home purchase and your commercial building purchase is exactly the same." You chuckle and explain to him that the process does have some similarities, but there are myriad of differences. Your brother asks you to explain the procedural differences between these two types of negotiations. What will you tell him?

There are significant differences that exist between these two forms of negotiating wherein the negotiations that are required for real estate occur between novice individuals in regard to the person selling their home as well as the person intent upon buying the home. This is also juxtaposed by the ability for the home seller to raise the price above market price wherein they have the autonomy to sell their home for a higher price than the value of the home if they have done renovations on the home and other upgrades. In regard to commercial real estate, the prices are appropriated toward the market value and negotiating on the established price is not common because this price is typically in accordance to the market value of the commercial property.

Therefore, your brother should recognize that negotiating his home price is far more susceptible to fluctuations in the house market as the value of the house is also able to be reduced if there are economic downturns. In addition, any house features that exist in the home could elicit a higher price to purchase the home than would be necessary for homes without these house features. The commercial building will be contingent upon what the building will be used for wherein the organization must ensure that it focuses on the size range of the building, whether it can facilitate the businesses' needs in regard to operational functioning, and whether the amount of office space can ensure that the business is capable of producing the maximum output.

Other areas that must be ascertained are whether the building has the correct electrical power distribution that the company needs, can the building meet the entire operational needs of the company, and if these questions can be answered in the affirmative, the building would be suffice as the most important variable when engaging in commercial real estate negotiations is the utility of the building.
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It would be impractical to choose a building that didn't meet the business needs as if ...