Wednesday, 19 October 2016

Waad Nadhir - Real Estate Negotiations

As co-founder and President of BOSC Realty Advisors, Waad Nadhir has an extensive experience in real estate negotiations.

You may have a lot of work ahead of you even after you find a commercial real estate property you’d like to buy. Let’s assume that you found a property that you’d like to acquire and it costs $500,000. If you have $500,000 in cash in the bank, then you can simply make an offer for the asking price, sign a contract, wire the money and close the deal. If you have an approved line of credit for a bank for the required amount, then the transaction will also be easy.

However, it is also possible that you do not have the full amount of money in cash or credit line. You may not be willing to pay the asking price. In this case, you will have to negotiate the price, size of down payment, loan terms with your bank including interest rates and collateral, lengths of tenancy leases and so on.

The key to every negotiation is preparation. You want to collect as much information as possible about the property, the sellers and their reasons for selling the real estate. For example, if you find that the seller or the real estate agent are slow to respond, unprofessional and sometimes even rude, then you know that your competitors will most likely pass on the deal and you will have more leverage in the end.

Negotiations are called negotiations because they include give-and-take. You need to establish what is important to the seller and be clear with yourself about what is important to you. It is ideal if different parties care about different things. Experienced professionals like Waad Nadhir can easily make a deal in this scenario.