Most of us skip the “Terms and Conditions” part when downloading new software or an app.
But when it comes to a commercial property deal, thoroughly reading the contract is imperative. But it doesn’t stop there; you need to do everything you can to negotiate favorable terms with the seller.
A bad property deal can leave you in debt, jeopardize your business, or even completely ruin the chances of your startup succeeding.
But don’t worry. We’ve got all the secrets to negotiating a good commercial property deal. Here’s what you should do:
Do Your Research
Though self-evident at first glance, the best way to avoid a bad deal is to do your research. We can’t stress this enough; so many clients come to us but have no idea about the latest market trends, which a) doesn’t allow them to see the true value of a property, and b) allows sellers to take advantage of them.
When you don’t have a budget that’s based on key requirements and a solid understanding of market prices, your commercial property deal is probably far from favorable to you.
Look into the area you want to purchase the property in. Look into the market prices. And then compare available properties accordingly. Moreover, talk to a bunch of sellers before making a decision.
Understand Property Types
When it comes to commercial properties, there isn’t one type of real estate property; in fact, there are five—multifamily, corporate, industrial, retail, and ‘special purpose.’
The type of property you should purchase depends on the type of business you want to start. If you’re opening a factory, you’ll need an industrial bug. If you’re opening an office, you’ll need a corporate building, or office space.
Depending on your business use case, thoroughly assess what kind of building you’ll need. Once you arrive at a decision, proceed accordingly.
Be Honest and Thorough
Be honest about your expectations and let the seller know what you want to achieve with this deal. If you don’t like a clause in the contract, let them know. Highlight unfavorable clauses and make arguments that are based in business profitability and long-term impact.
Remember, communication is the key to a good negotiation. Also, make sure to ask the seller as many questions as you can about the property.
You want to purchase the property in good condition. Make sure to ask them if you can inspect it thoroughly before signing the contract.
Hire a Real Estate Broker
And last but not least, make sure to hire a commercial real estate broker Mount Clemens. A real estate broker knows everything about the market, property types, the latest trends, and how to effectively communicate with sellers.
If you’re looking for a commercial property investment opportunity, the agents at Macomb Commercial Real Estate can help make your goals possible.