Buy Or Lease? What Is Best For Your Business?
Regardless of which side of the negotiations you're on, learn to haggle. Both the buyer and seller should attempt to negotiate a fair price rather than accepting the other's first offer. Make sure that you are heard and that you fight for a fair price for the property.
Take the time to be certain you are satisfied with a piece of real estate before you purchase it. Do not make impulsive decisions. If the property doesn't suit you in the end, you may regret your hastiness. Plan to keep your eye on your market for as long as a year if you want to find the right investment.
Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. You should make inquiries regarding pest control procedures, particularly if you plan to lease somewhere that is known for insect or rodent infestations.
Commercial property is an investment. This investment is not just money, but also time. Hunting for the opportune property will take time and effort, and even after you have purchased it, upgrades and reconditioning might be necessary. However, don't give up just because this will take time. You will reap the rewards of all your hard work.
See to it that the price that you ask for in real estate is realistic. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.
Research your prospective brokers to see how experienced they are with the commercial market. Make sure you know that they actually specialize within the area you plan on selling and buying. When you find the right broker, make sure your agreement is exclusive.
Write an easy-to-understand letter of intent, focusing on the biggest issues. You can worry about the little things later on. This will make negotiations less tense and make gaining agreement on the smaller issues easier to complete.
Advertise commercial property both to local and distant buyers. A lot of sellers fall into the misconception that only the local buyers are interested parties in potential purchase. Many private investors are willing and able to purchase properties outside their immediate community if the price is right.
Lower the risk of default by eliminating as many things that can be labeled "event of default" as you can prior to negotiating a commercial property lease. The tenant will then be less likely to violate these terms. Once a default happens, you'll be in big trouble!
You might have to make improvements to your space before you can use it. The changes could be rather cosmetic. Sometimes it is as simple as painting a wall or moving some furniture. The renovation project can get larger and could consist of knocking down, moving or building walls to make the floor plan usable. When negotiating, you should discuss who will pay for the improvements you'll have to make, and should see if the current owner will cover some of your costs.
