Mixed-use property
A single property that combines residential and commercial space. A shop with an apartment above it is the classic example. Financing usually falls under commercial loan rules.
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Part 1 of 4
Why a seller cares
A shop with an apartment above sells to a smaller set of buyers, usually on a commercial loan with a bigger down payment. The listing goes to commercial channels as well as residential ones.
Part 2 of 4
A simple example
You own a storefront with a two-bedroom apartment upstairs. The buyer's lender treats it as commercial and asks for 25% down and a commercial appraisal.
| What is different | What it means for the sale |
|---|---|
| Financing | Commercial terms; fewer buyers qualify |
| Appraisal | Income-based as well as comps |
| Zoning | Confirms both uses are allowed, which buyers check |
Mixed-use sells to buyers who read income statements, on lenders who read them too.
Part 3 of 4
What people get wrong
That the apartment makes it a residential sale. The commercial half decides how it is financed.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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