Negotiation is an art and a science. But like any art, it demands practice. And like any science, it requires study. A lot of people aren’t great at real estate negotiation at the start. And many properties don’t require it: You hand in an offer with the earnest money, and the offer is accepted or refused.
When searching for offers, you look for commercial real estate companies that sell commercial properties as their specialty. The real estate agents and brokers you become acquainted with can be incredible sources of commercial properties for you over time. You want to concentrate on the knowledge of trade brokers, but it's also important to understand that any members of your network who may be aware of a trade item for sale are a potential source of another agreement. You can also contact residential agents who have good relationships with customers who have used agents to purchase and sell houses and who also own a commercial property.
Some of the best business deals came from residential officers. As a rule, you are looking for residential brokers who have a customer who only has one or two commercial properties. When you find a property in this way, you have the additional advantage of being able to negotiate the price and conditions with the owner before a business broker just exaggerates the landlord's expectations by saying, "I can get you $10 million, no problem. Just give me the listing.” How can you tell if you have found the right realtor to work with? You never find a good property agent!”
Commercial brokers earn their commissions by offering you commercial bargains, so you should never limit yourself to working with a single real estate agent. You're trying to keep your options open. Commercial real estate is too broad to be restricted. There's no way one officer can get you all your agreements. You'll find agents suggesting that you work with them alone. No need to take the bait.
The following are some different scripts that you can use: "I will certainly work diligently with you to scrutinize any commercial property that you bring to my attention." » "Of course, to satisfy the requirements of my investors, I have to look at the properties in many regions and many sources in a way that protects my interests." "I will work strictly with you on whatever you give me for you to make a commission at the closing, but I will do the same with other officers and brokers in my network." "I will also do my best to make sure you don't spend a lot of time on a property that I don't intend to purchase. Is that fair enough?”
The best negotiators are problem solvers, who recognize that both home buyers and home sellers ultimately want the deal to close — with as few complications as possible.
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