Time management is essential to the successful operation of any business. The same is true when investing in real estate. Your offer, or purchase agreement, will likely contain several conditions, and the timing for those conditions will not only impact the purchase price but also your ability to secure the property. Here are three things to consider when adding time-sensitive conditions to a purchase agreement.
Conditional time frames for inspections and due diligence are common in commercial offers. By knowing how long inspections and assessments take, you can make a stronger offer. However, there can be a trade-off with shorter conditional periods. Unforeseen delays can result in a renegotiation between the buyer and seller, which will carry some risk. Sit down with a knowledgeable commercial realtor to seek guidance on conditional time frames to strengthen your negotiating position.
Closing dates have the potential to impact business operations for all parties involved. Flexibility with closing can often work in favor of the buyer. If the buyer allows for seller accommodations, the buyer may be able to gain concessions in other areas of the deal. The same goes for the seller. It can be advantageous to remain flexible with closing dates if the buyer needs or wants possession by a certain date.
Uniform dates should be used whenever possible. Having multiple conditions with a variety of dates may seem sensible at first, but it can make your offer look unnecessarily complicated and overwhelming.
Additionally, a delay in one area could have a cascading effect on remaining conditions or time frames.