Buying or selling commercial property is a significant legal and financial transaction, and certain mistakes made during this process could have implications for one or more parties involved. Missteps during a commercial real estate transaction in Tennessee could lead to complications that may include everything from buyer’s remorse to financial loss. It is prudent to be cautious and careful at every step of the process.
Real estate transactions involve much more than just finding a desirable property and making an offer. Commercial property transactions are complex, and there are issues such as zoning to consider as well. Before listing a property, making an offer or signing on the dotted line of a contract, it is beneficial to understand common mistakes in order to prevent them.
The importance of prevention
Problems in a commercial real estate transaction are likely to be much more than just an inconvenience for a buyer or seller. They represent the potential for financial loss, legal complications and issues regarding the intended use of the property. Some of the most common mistakes both buyers and sellers will want to avoid include:
- Talking about a deal publicly before a contract or details of the agreement are final
- Falling in love with a property and allowing emotions to drive decision-making
- Failing to have the proper financial backing before making an offer
- Having unrealistic expectations for the process
- Not paying the costs associated with due diligence, such as having an inspection done
- Being personally insulted by a low-ball offer or negotiations
- Using a residential title company to do the closing instead of a commercial company
These mistakes and others could lead to time and money lost. The financial stakes associated with a commercial real estate process are significant, and it is prudent to take every possible step to ensure that unnecessary mistakes do not cause issues along the way or derail the transaction completely
Preparation and guidance
Before buying or selling commercial property, it is prudent to take the necessary steps to ensure that you have the full amount of protection you need. An assessment of your objectives, the type of property you are buying or selling, and other details may minimize your chance of encountering challenges as you navigate a commercial real estate transaction. Before you move forward, you will benefit from preparing, understanding what mistakes to avoid and securing knowledgeable guidance.