Not Knowing Market Availability and Comparisons When You Begin Negotiating
Part 3 in: 3 Common Mistakes Healthcare Professionals Make During Lease and Purchase Negotiations.
The final part of this series highlights the mistake healthcare professionals make if they do not know market availability and comparisons when they begin lease or purchase negotiations.
Commercial real estate negotiations are complicated and can be very costly if not handled properly.
In parts one and two of this series, we discussed how it’s a mistake to assume the landlord or seller will simply offer you the best terms possible, and why it’s a mistake to determine what you believe is a good deal by comparing it to what your neighbors are paying.
In the final part of this series, I want to cover the mistake of not knowing other market availability and comps when you begin negotiating.
The foundation of a successful negotiation starts with understanding what other options are available in your area, how they compare to each other, and how to execute on them.
When dealing with landlords or sellers many healthcare providers try to bluff their way into and through negotiations. A savvy landlord or seller can often read a block from a mile away.
Here’s the problem with that approach; it communicates you are too busy, you don’t know who to hire, and you don’t know what you can achieve. Trying to wing it in these scenarios will not work.
This approach typically results in less respect from the landlord and the exact opposite results you were hoping for.
Also, overly aggressive offers or unrealistic requests can compound the problem, ask in emotional responses to the inherent conflict and confrontation that you find in most high-dollar negotiations.
If you’re going to be successful in your next negotiation, understanding market availability and comps is the first place to start. You can hire representation to do this for you, or you can invest dozens of hours of your valuable time into the process.
These are just a sample of the more common mistakes you should seek to avoid when looking at your real estate decisions. Unfortunately there are several more you need to avoid.
In summary, don’t be taken advantage of during your next lease or purchase negotiation. There’s way too much at stake, and losing tens to hundreds of thousands of dollars affects your income. It can also affect the quality of care you provide.
Instead, hire professional representation to level the playing field, start the transaction at the proper time, and know the market and top available options to negotiate with multiple owners.
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 1 of this series, Believing The Landlord or Seller Will Simply Offer Their Best Terms, click here.
For part 2 of this series, Determining Your Commercial Real Estate Value By Asking What Your Neighbors Are Paying, click here.