You’ve gradually been building up your real estate portfolio for a few years now. It’s time to make your next move. You’ve spotted an ad and the property seems ideal at first glance.
Acquiring the right properties is key to your commercial success, but you also need to know when to walk away. Outlined below are some clues that a real estate deal may not be for you.
A lack of interest
Initially, you thought the property had just been placed on the market. Upon further inspection, you discover that it has just been readvertised, after a price reduction. The building sat on the market for several months before, with no formal interest being noted. Many people must have seen the spot before you got there, and you have to ask yourself why they’re not interested. If this is the “perfect deal”, then why has nobody else taken up the offer?
A lack of disclosure
Sellers have a legal duty to report fundamental flaws with a property. They must be open and honest if there is a presence of asbestos or other harmful substances for instance. You’ve inquired about this, and nothing has been mentioned. However, when you request to carry out some of your own checks, just to be safe, the seller becomes defensive. Honesty from the seller is crucial in any real estate transaction, and one thing is for sure, you do not want to discover flaws after you have committed to the purchase.
You’ve already established your business as a real estate developer, which means you have natural instincts that are trustworthy. If you have any doubts, or you feel that your legal rights have been violated, make sure you further explore your options.