If you are getting ready to purchase a commercial property for your business in Carnegie, there are some things you should first take into consideration. You do not want to end up entering into an agreement that is one-sided or fraught with pitfalls for you. The right decisions and agreement can make your real estate transaction a successful one.
Keep in mind that commercial real estate transactions involve a lot more risk than residential ones. To keep you from losing your business and hard-earned money, here are some mistakes that often occur in commercial real estate transactions that you want to avoid.
Comparing similar properties
When shopping for the right building for your business, you have probably looked at several properties before settling on one or two. You may find yourself getting caught up in comparing the visual aspects of each one instead of the actual value of the buildings. It is important for you to think about if the price of the property is fair. You should also consider the amount of income you anticipate generating. According to FindLaw, a cash flow analysis can help you to determine how much of a risk you are taking with commercial real estate investments.
Accepting liability for existing hazards and building violations
Not all properties are free and clear of hazardous issues. Be sure to read through all purchase agreements to ensure that you are not assuming liability for any preexisting building hazards. Get an inspection and be sure to address any concerns with the property seller.
Do not let your eagerness to scoop up what appears to be a good investment keep you from examining the facts and exercising due diligence. Fully research your options, cover all of your bases and work with an attorney if necessary to protect your interests.