Negotiating the sale of a commercial property is a tricky endeavor. For starters, there are plenty of factors to consider including how much the asset is worth, what is its profit potential, whether the property already has tenancy in place, etc. To a lot of buyers, these factors can be the cause of significant anxiety, but for a savvy business owner, these are simply opportunities to negotiate a better deal.
Here are a four essential tips for tackling Vancouver commercial property for sale negotiations and how you can use them to achieve a lower price tag and other more favorable purchase terms.
Never negotiate a deal on your own
The first thing you need to decide on is who will represent you. Having an intermediary such as a lawyer or business broker is a good choice when dealing with a seller. These professionals have plenty of experience on the matter, which can be invaluable, especially if you are a first-time commercial property buyer.
Do your research
You need to find out everything you can about the property, the sellers, the market, and any other relevant pieces of information that can give you a good idea of what you’re getting into. You’ll want to familiarize yourself with facts and statistics of the business as much as—if not more than—the owners themselves.
Identify possible outcomes before the first meet
It pays to have a game plan before you start negotiating the commercial deal. Identify the key points you want to discuss during the meeting and the outcomes you want. What’s your target price? What terms will you be willing to compromise or settle for? Do you want to make modifications with your original offer? Be specific and upfront about every single detail.
Know the seller’s motivation
Both you and the seller are looking to get the best deal possible. While the goal is to have all your terms approved by the seller, it’s probably likely that you’ll have to compromise to get what you want. Thus, it’s necessary for you to be observant and watch out for clues that can help you bridge the gap between you and the seller.
The circumstances differ with each Vancouver commercial property for sale negotiation process. For a negotiation plan tailored specifically to your needs, don’t hesitate to consult or work with a savvy business broker in your area, such as Vancouver Business Brokers.
Negotiating A Commercial Lease? Here’s What You Need To Know, Forbes.com
Tips for Negotiating Your Commercial Property Deal, ReMentor.com