Believing the Landlord or Seller Will Offer Their Best Terms
Part 1 in: 3 Common Mistakes Healthcare Professionals Make During Lease and Purchase Negotiations.
In part 1, Colin Carr, CEO of CARR, explains one of the costly mistake’s healthcare professionals make during their lease and purchase negotiations: believing the best terms are offered first.
Commercial real estate transactions are complicated and require a high level of attention. While there are many key concepts and strategies you should always do prior to and during any lease or purchase negotiation, there are an equal or greater number of mistakes you should avoid.
Having represented thousands of healthcare professionals over the last decade, we have gathered some of the most common mistakes healthcare professionals make during lease and purchase negotiations, with the goal of helping others avoid the same pitfalls.
Here are three of the most common mistakes we see. Number one, believing the landlord or seller will simply offer their best terms. Landlords and sellers are in business to make money. They are no more likely to voluntarily reduce lease rates or give up any extra money through concessions as you would be to voluntarily reduce your reimbursement from an insurance company or cut your patient fees if you didn’t have to.
While it sounds pleasant to hear a landlord talk about giving a “fair deal” or “reasonable price,” your odds of getting either are bleak without truly understanding the market, entering the negotiation process with multiple other viable options, and having the needed guidance to capitalize.
Trusting the landlord or seller without the help of professional representation will most likely result in the forfeiture of tens to hundreds of thousands of dollars that could have stayed in your checking account.
Case in point, if you were about to sell your home and a fair price was four hundred thousand dollars but your agent told you a buyer would pay five hundred thousand dollars what would you list or sell your house for? The fair price of four hundred thousand or the most you could get for it?
Exactly. You would sell it for the most you could possibly get. Your landlord will treat you the exact same way. They will charge you the highest they can get while giving you the least they can get away with. That’s how commercial real estate works.
To ensure that you’re not misinformed or taken advantage of during your next commercial real estate negotiation contact an expert agent who specializes in representing healthcare providers in an area near you.
For Part 2 of this series, Determining Market Value by Asking What Your Neighbors Are Paying, click here.
For Part 3 of this series, Not Knowing Market Availability and Comparisons When You Begin Negotiating, click here.