When you invest in commercial real estate in Florida, the seller of the property may need to do certain things to lower your closing costs and make the sale more appealing to you. Seller concessions occur when the property owner covers a portion of your closing costs, either to make up for something specific or simply to lower your upfront financial burden.
Per Millionacres, there are certain circumstances under which it makes sense to ask for seller concessions. There are also certain instances in which you might want to avoid doing so.
When to consider asking for seller concessions
You may have some room to negotiate with your seller and request seller concessions if the commercial real estate market is slow in your area, or if you are facing a buyer’s market. It may also serve you well to ask for seller concessions if the property is less desirable than many alternatives on the market, or if there are many similar properties currently available.
When you may not want to ask for seller concessions
In some cases, requesting seller concessions might result in you losing out on a property to a buyer who does not ask for them. If you are facing a seller’s market, or if the property you have your eye on is one you really want, consider asking twice before asking the seller to make special accommodations.
Ultimately, the more difficult a market your seller faces the more likely he or she may be to offer seller concessions. Understanding when to ask for them is an important part of achieving success when investing in commercial real estate.