Business growth can often result in the need for commercial space from which to operate. While buying commercial real estate can be costly and difficult, ownership of your own commercial space may be what you need to take your business to the next level. In making such a purchase is important for potential buyers to work toward getting the best deal possible. As a result, a potential buyer may ask for seller concessions.
As with any type of negotiation tool, there are upsides and downsides to seller concessions. For example, as an upside, the buyer could ask the seller to make repairs to the property, pay a portion of the closing costs, or take other measures to reduce upfront costs for the buyer. These concessions could make a purchase more financially realistic and appealing to a potential buyer.
One downside to asking for seller concessions in a commercial real estate transaction is that the seller could refuse to make those concessions and choose to sell the property to another buyer. Sellers certainly have a bottom line they want to meet, and in some cases, having to pay closing costs or make other concessions may not be financially feasible from the sellers’ point of view.
Commercial real estate is a major asset, and the terms of its purchase should be carefully reviewed. Contract negotiations can be tricky, and interested parties may want to ensure they have the right help. Skelton Slusher Barnhill Watkins Wells, PLLC has attorneys experienced with real estate transactions who can protect your interests, while making the process as smooth as possible.