Commercial real estate properties in BC make for incredible investment assets. Want to put yourself in the position to earn from a lucrative property? Prepare for the crucial negotiation process with these six effective strategies in mind:
Determine your budget
Before exploring your options in the market, know how much you can spend. This information will ground your negotiations around the price range you can realistically afford.
Budgeting for your purchase involves more than just the cost of the property. Other costs to consider include:
- Structural and environmental assessments
- Land transfer taxes and legal fees
- Repair and renovation expenses
- Any expenses required to meet contingencies
- Moving costs, if necessary
Assess your needs and targets
What are your goals in investing in a commercial real estate property? Be clear with these plans and targets and use them to stay focused throughout the negotiation process.
For instance, if you are buying property to establish a commercial enterprise, consider the amount of space you will need, including any anticipated growth. Consider the ideal location to set up an operation like this, as well.
Expand your search options
If you are looking for the best opportunities to negotiate for a low purchase price, be open to a wide variety of options. Take advantage of more flexible sale prices by considering:
- Properties located further from central commercial areas
- Distressed or repossessed properties
- Buildings with distinct designs or layouts, such as former bank or restaurant spaces
Remember, your return on investment depends more on what you do with the property after you purchase it, rather than what it was before.
Learn as much as you can about the property
The more information you have about the property you want to buy, the more valid points you can use to bargain toward your target price.
Get the property inspected and appraised by professionals. Look into the range of activities you are allowed to do on the property, as well as what structures you build when you need to expand. Learn about local code restrictions that may limit certain operations and changes that you may have in your plans.
Begin with a strong, well-thought-out offer
Make a compelling offer that covers your needs and budget, while also satisfying the seller’s requirements. This will put you in a strong position to begin a productive negotiation. Consult your agent for advice on how to package an offer that property sellers in your area will find hard to resist.
Work closely with your real estate agent
Effective negotiation is one of the most invaluable benefits you gain from hiring a real estate professional. In addition to helping you find the best properties that fit your needs and budget, your agent serves as a reliable, steadfast, and level-headed representative who will watch out for your best interests at the negotiation table. More importantly, they can provide you with the local data and resources that you need to make a strong case for your offer.
To maximize your agent’s negotiation skills and experience, be sure that you and your agent are on the same page about your real estate goals and targets from start to finish.