It's often easier to evaluate the prices of commercial property than residential, because you can request the current owner's income statement and determine what the price should be based on that.
More objective price evaluations. It's often easier to evaluate the prices of commercial property than residential, because you can request the current owner's income statement and determine what the price should be based on that. If the seller is using a knowledgeable broker, the asking price should be set at a price where an investor can earn the area's prevailing cap rate for the commercial property type they are looking at (retail, office, industrial, and so forth). Residential properties are often subject to more emotional pricing. See Evaluating Cap Rate: Is that Residential Real Estate Investment Property Worth It? for more on the subject.