Buying A Commercial Property? 4 Tips to Help Your Negotiations
The real estate industry can be complicated and cutthroat, and you need to work very hard to ensure that you are getting your money’s worth. If you are purchasing a commercial property, it’s crucial to get a deal in your favor. This will serve as an excellent foundation for future success.
The negotiation process in any real estate transaction can be very tricky, especially for commercial properties. It’s essential to be prepared and to arm yourself with all the information you need to help you make the most advantageous deal.
Here are four simple tips that will give you a leg up during negotiations:
1. Define Your Bottom Line
Before anything else, you need to have a clear idea of what you need out of your property. Lay down all your absolute non-negotiables regarding location, square footage, zoning requirements, layout, and other variables.
Your bottom line should also include your budget. Take a close look at your financials and consult a mortgage lender, so you have a price range before you head into negotiations. You will be able to make firmer, smarter decisions when you have rigid requirements.
If you have features that you can compromise on, you should take note of them, too. It helps to have an open mind when looking for commercial property to purchase.
2. Do Your Due Diligence
Before jumping into any real estate transaction, you should take a long hard look at all the other properties in the surrounding area. Talk to your local real estate agent about what commercial properties have sold for recently. While no property is identical to another, having an idea about the current market average will help you determine if you are getting a good deal.
You should also find all the information you can about the listing you’re interested in. If it’s been sitting on the market for longer than a month and the seller is eager to get it off their hands, you can leverage that to lower the asking price.
3. Look Through All Costs
Before negotiating and signing a deal, you should nail down all the costs that will come with closing. Does the property need renovation or high-end maintenance? Are there any hidden costs that you will shoulder once you purchase the property? If a property management company is involved, what is their going rate?
The seller should provide you with all the historical information you need to make a decision. You should have a record of all recent utility bills, property taxes, and capital improvements made.
4. Hire A Professional
A highly qualified commercial real estate agent will give you invaluable insight and assistance through all the negotiations and transactions. If you choose right, your real estate agent or broker will help leverage a fantastic deal for you.
Lawyers, accountants, and mortgage lenders can also provide valuable input during the decision-making process. Having an advisor or two in your ear will only benefit you in the long run.
Purchasing commercial property is a daunting process, especially when you come down to the nitty-gritty of negotiating with a seller. It’s essential to be as informed as possible before making any major decisions. A trained professional will help you get the most advantageous deal that will be the foundation for all your future business success.
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