When you find the commercial property, it’s important to remember that there are other investors who have probably found it as well. Sometimes, this leads to a bidding war that can take weeks or even months, setting your endeavor behind schedule and potentially causing you to miss out on a good investment. Fortunately, there are a few things you can do to increase your chances of winning the bidding war, so you can get moving with your commercial properties and develop them right away.
Familiarize Yourself With the Area
Numbers change from area to area, and it will definitely benefit you to be familiar with how these figures are trending in the neighborhood you’re looking to buy in. This will help you determine how high or low to make your offer initially, and what to expect from other bidders who might try to get the property as well.
Be Realistic
There’s no harm in haggling the price when it comes to purchasing commercial properties, but when you find yourself in a bidding war, you always need to be realistic about the amount you’re willing to pay. Keep in mind that the seller is looking to make a profit from the sale in most cases, and that other parties are willing to step forward if you aren’t,
Know When to Walk Away
Before entering your first bid, you need to draw the line regarding how much you’re willing to invest in the property. Assess how much the lot is worth and how crucial it is to your future plans, then consider how much these long-term benefits are worth right now.
Be Flexible
Aside from being flexible with how much cash you’re willing to spend on the venture, you need to be flexible with options like inspection dates and closing dates as well. This consideration can really set your offer apart from others, and may win the seller over if they’re dealing with a peculiar time frame themselves.
Don’t Procrastinate
Don’t hang back to see what other bidders are going to offer for commercial properties you’re interested in. Being one of the first parties to place a bid sets you apart as a serious buyer.
Prequalification
Being qualified for your loan ahead of time shows that you’re serious about making the purchase and that you’re financially willing and able to handle the transaction.
Connect With Sellers
Take the time to introduce yourself to sellers. Make yourself more than just a number or bid on a page to set yourself apart and give sellers confidence in you.
Take each of these tips into consideration before next bid to win the war and get the commercial properties you’ve been waiting for.