Commercial
real estate is different from residential real estate in many ways. Realtors
are of the opinion that crime rate affects commercial property, but the effects
are not as brutal as they might be in case of residential property. The risks
associated with crime vary with the intensity and severity of the crime. Here,
not just your property but your life and money all are exposed to risk. Whereas,
in case of residential property the situation is even worse.
According
to Dean Graziosi, the threats that are posed by criminal activities can
decrease value of the property. However, we can say that in many cases people
tolerate criminal activities on commercial places. For example, if your jewelry
shop is robbed, people will not shun buying jewelry from your shop. On the
other hand, if there is a burglary in your neighboring house, buyers will think
twice before purchasing your house.
Apart
from this, there are other factors as well. For example, how much time the area
has been robbed? Which parts of the commercial area are more prone? Is there
any loss of life? Was the activity for the first time? Is there any slum or
similar other place in the vicinity that acts as a catalyst?
According
to Dean Graziosi, realtors, especially buyers, must act carefully when they are
purchasing a commercial
property. Criminal
activities can reduce value of the property, no matter if you have bought the
property in $250,000 its value will fall drastically if there is a criminal
activity. Dean Graziosi is a very experienced realtor. He has spent most of his career
life performing real estate deals of different genres and magnitudes.
Dean
started his real estate career some twenty years ago. His first real estate
deal was that of a run-down apartment building. Dean is a millionaire now. He
has written bestselling books. His books are based on his personal experience
and successful career life. Dean has also designed courses and training guides.
His courses and guides are a source of success for many aspirants. Dean is a
very motivating public speaker.
He
conducts live events and seminars. Dean is a symbol of hard work and struggle.
According to him, a good and experienced realtor can convert a dead deal in to
huge hit. There are many examples when realtors have bought brutally effected
properties and turned them into a symbol of pride for their nation. If you are
one such ambitious personality, it is better to know about the effects of
crimes on your property. This will help you design a strategy to cope with the
situation.
Effects of Criminal Activities:
- In most cases, the people are afraid to come at a place where criminal activities have occurred in past. Most of the people are afraid of losing money or life. The best you can do is to build the property in such a way that it attracts customers.
- The value is reduced. This effect is mostly in favor of the buyer. Once there is a criminal activity, seller will try to sell the property in a price that is much lower than his actual demand.
- Most of the people have a perception that property in a crime free zone is more profitable. This notion is true up to some extent. People are afraid, they are not at ease and their psychology is affected by the past criminal activity. In order to pursue customers, you must provide them psychological relief.
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