Tips on How to Negotiate a Property Purchase
When you’re dealing with a quality construction company, realty agency, or a seller to obtain a new building, the process may seem overwhelming. When buying business space, there’s so much to consider, from inspections to closing and everything in between. You can easily become overwhelmed and neglect to focus on the financial aspect of the deal of a property purchase.
However, you can negotiate the cost of your new office building, even if you’re working with a company that specializes in construction management in Florida. Before you go into any negotiations, though, you should understand what techniques work best to ensure you receive the lowest price possible.
Hire a Real Estate Agent or Lawyer
Even if you’re looking at building a new office building or storefront with building contractors, it could be in your best interest to hire a real estate agent or lawyer. This person works for you and has your best interest at heart. They understand how to lower the price of a new construction or pre-owned building. This is a person who understands what gives the buyer an upper hand in any sales transaction.
They also know how to spot problems and have access to the resources to figure out what the average cost of a building is in that area.
Keep in mind that a standard home realty agent isn’t the same as a commercial real estate agent, so make sure you do your research before you hire an agent who doesn’t have expertise in that area of real estate.
Opt for All Inspections
It may seem like an easy way to save a little money and waive some of the building inspections in a property purchase. However, you lose leverage whenever you waive these inspections before the initial contract. The purpose of them is so you can find what’s wrong with the building and negotiate the issues that need to be fixed before the building sells, or you can use the results to talk the seller down in price.
Keep in mind that even if you waive the inspections initially, you can still have the inspections done before closing and back out of the deal. They just won’t be part of the contingencies.
Get Preapproval First
Before you start looking around for a space, make sure you get preapproval for the amount of money you will need for your property purchase. This helps you understand your budget, so you know how much you can offer and stay within your target budget.
Additionally, it shows the buyer that you’re serious about buying commercial property.
Know the Market
If you’re working with an agent, your agent will know the market in the area well. The agent will know what similar properties are selling for in the area, so you have a strong foundation to negotiate on.
On the other hand, if you decide not to work with an agent, you should know the average prices of similar properties in the neighborhood on your own. That way, you have a basic understanding and can negotiate with adequate information about the average sales price.
Know When to Start Low
You don’t always want to start the negotiations as low as possible. You also don’t always want to start the negotiations out as high as possible. It all depends on the property and its potential. Generally, this is when a commercial real estate agent comes into play.
While a commercial agent realizes commercial contractors work hard and deserve a fair cut, they also realize that the buyer shouldn’t get swindled in the deal, either. The agent will strive to meet in the middle and will know when it’s best to stick close to asking prices or go lower and work your way up.
Sometimes, negotiations tend to get a bit heated. It’s not shocking when one side is for the office building construction company, and you’re representing yourself as a business owner. You both have opposing goals and are out to benefit yourselves. Ideally, you want to remain firm but always remember to treat the opposing side with respect. Leave negative banter and accusations out of the mix.
Just because you’re going through a construction management company in Florida doesn’t mean you can’t negotiate. With these tips, you’ll be able to get the best price possible with possibly extra money to spend on creating your dream storefront.
Contact MH Williams Construction Group
MH Williams Construction Group is here to help you create the building of your dreams. We provide our customers with the most qualified engineers to design your building and fast-track you through the processes. No matter what phase you are in, we can help you get to your end goal. Contact us today!