The commercial real estate landscape can be harsh and unforgiving. Fortunately, you may be able to protect yourself with strong and legally enforceable contracts. To secure these agreements, though, you’ll have to enter negotiations. And that process can be more complicated than it seems. Let’s look at some common issues that can crop up during real estate contract negotiations so that you can more easily spot your weaknesses and can shore them up before moving forward.
There are a lot of places to slip up during the contract negotiation process. These can include the following pitfalls:
- Making a lowball offer that turns the other side off to effective and successful negotiations.
- Rushing the process to wrap it up quickly, which can result in accepting contractual terms that aren’t in your best interests.
- Making emotional decisions on contract terms rather than looking at how they affect your business operations and profitability.
- Neglecting to conduct due diligence beforehand so that you know exactly what you’re getting into prior to negotiating and finalizing a contract.
- Failing to get all contractual terms in writing, which can lead to contested issues later on that are difficult to sort out absent litigation.
- Inadequately considering why certain contractual offers were rejected.
- Improperly making counteroffers when an initial offer is unfavorable.
- Misunderstanding what sort of commercial lease agreements you can secure under the contract.
Develop the real estate contract negotiation strategy that’s right for you
There are several ways to approach real estate contract negotiations. Finding and developing the strategy that’s right for you can be tricky. But don’t let the process fool you. You can and should take control of your contract negotiations so that you can obtain a favorable outcome. Of course, that’ll require thorough preparation and an eye on commonly made mistakes, which is something that your attorney can help you tackle.