Are you thinking about buying or selling a personal or commercial property? Here are some things to keep in mind.
Question: What is the standard commission for real estate agents in Mississippi?
Answer: There is no standard commission. All real estate brokerage commissions are negotiable.
Q: Our small business is considering moving to a larger location in a nearby shopping center. The real estate agent said we could opt for a triple grid lease and get a lower monthly rent. What is a tri-net lease?
A: Commercial leases are often referred to as net, double net, and triple net. Generally, these leases are the type where the tenant is expected to pay part or all of the expenses. A net lease is one in which the tenant pays a base rate, plus utilities and janitorial costs. A double net lease refers to a type of lease where the tenant pays a base rate, plus utilities, security, and the tenant’s share of property insurance. A triple net lease (also referred to as NNN) is a contract in which the tenant pays the base rate and all expenses of the property, including property taxes, insurance, and maintenance. These terms are not necessarily uniform across the country. The lease itself should be examined to determine who is paying what. One of the advantages of a triple net lease for the owner is that it relieves him of the worry of expenses. The advantage for the tenant is that the base rate is lower and they can have more control over expenses.
Q: I’m thinking about selling my house myself and I’m interested in making sure my ads will attract attention. I know I should put a “For Sale” sign in the front yard, but any other marketing advice would be helpful.
a. Don’t sell the property – sell the interest. Benefit is advantage. It’s a useful thing. One way to sell benefits is to use wording in your advertising that encourages the buyer to envision themselves actually owning and occupying the property. Here’s an example of an ad: “For sale, 3 bedroom, 2 bathroom house near elementary school.” Now try this for size: “Through the kitchen window, you can see the children coming home from school.” Also think about your home’s greatest asset. Is it the cozy fireplace? A patio where you can smell the burgers cooking on the grill? Finally, have a videographer make a professional video and put it on YouTube and the website you are listing to showcase the property.
Q: What is the best month to sell a house?
A: The latest statistics from the National Association of Realtors reveal that more existing home sales occur in July, followed by June and May. Note that these numbers represent closed transactions. This means that spring is probably the best time to list a home for sale. What is the worst month for sales? It was January. This likely has to do with the weather, post-Christmas expenses and the kids still in school. By the way, according to NAR, in July 2023, the median sales price of existing single-family homes sold was 412,300, up 1.6 percent from the previous year. The number of sales nationwide in July was 3,650,000, down 16.3 percent from last year.
Q: What is the biggest mistake a home seller can make?
A: In my opinion, the biggest mistake a home seller can make is trying to sell the property themselves without having the knowledge and skill to do so. Many homeowners seem to think that all they need to do is put a “for sale” sign in the yard and buy a copy of the real estate contract from an office supply store. They don’t know how to research property values or how to negotiate. They do not understand responsibility for property condition issues, etc. They are also handicapped by a lack of objectivity. It’s difficult to negotiate the sale of your home when there are so many personal memories attached to it.
Q: What is the difference between fixtures and personal property?
A: A fixture is an item that was once personal property, but then becomes attached to the building or land to become real estate. If they are fixtures, they belong to the buyer because the buyer purchased the property. On the other hand, personal property is an item that can be moved and is not attached. A commercial fixture is a piece of equipment located on or attached to a property that is used in a trade or business. Commercial fixtures differ from other fixtures in that they may be removed from the property (making them personal property even if attached) at the end of a business lease, whereas ordinary fixtures attached to the property become part of the property.
The above should not be considered legal advice. Consult a lawyer before entering into any real estate contract.
Phil Hardwick is an award-winning business columnist and semi-retired economic developer. He served as an adjunct faculty member at Millsaps College and is a life member of the Mississippi Economic Development Council.