Need Advice

[dpeacock]

Hello Investors,

I`m looking for a little advice as this will be the first Commercial property I`m buying.
I`m going to make an offer on a Business Condo in Calgary. for personal use.
I like the space, and would like to get it, so I`m willing to pay near market value, if i have to.
Property is listed thru a realtor.
I`ve looked at Comps, so I`m reasonably comfortable with my offer price, which will obviousely lower than the ask.
Total Sq ft, including common area is 1,342 sq ft
Actual office area is 1,074 sq ft.
Nice building, well kept, 8 yrs old, just off Mcleod tr.
Asking price 425,000.
Condo fees 650 mo.
I`ll be making an all cash offer.
I`d like to make sure:
1. There are sufficient reserves in the Condo operating account.
2. I`d like to confirm the value. Do i do this after I`ve made the offer, and then back out if the appraisal is not to my liking, or renegotiate a lower price?
3. Should i have the Condo inspected after making the offer, but before purchasing?
4. What is a reasonable deposit to show I`m serious.
5. Any things that i might be missing in this offer scenario?
6. Any reccomended negotiating strategies.

Thanks for any advice offered.

Dan Peacock

 

[DaveRhydderch]

QUOTE (dpeacock @ Dec 15 2010, 11:08 AM) Hello Investors,

I`m looking for a little advice as this will be the first Commercial property I`m buying.
I`m going to make an offer on a Business Condo in Calgary. for personal use.
I like the space, and would like to get it, so I`m willing to pay near market value, if i have to.
Property is listed thru a realtor.
I`ve looked at Comps, so I`m reasonably comfortable with my offer price, which will obviousely lower than the ask.
Total Sq ft, including common area is 1,342 sq ft
Actual office area is 1,074 sq ft.
Nice building, well kept, 8 yrs old, just off Mcleod tr.
Asking price 425,000.
Condo fees 650 mo.
I`ll be making an all cash offer.
I`d like to make sure:
1. There are sufficient reserves in the Condo operating account.
2. I`d like to confirm the value. Do i do this after I`ve made the offer, and then back out if the appraisal is not to my liking, or renegotiate a lower price?
3. Should i have the Condo inspected after making the offer, but before purchasing?
4. What is a reasonable deposit to show I`m serious.
5. Any things that i might be missing in this offer scenario?
6. Any reccomended negotiating strategies.

Thanks for any advice offered.

Dan Peacock

Hi Dan,

You need to make your offer conditional to a condo document review, property inspection and to an appraisal/financing. Note that if the appraisal is less, than you can back out or negotiate a lower price if they will accept that.

Deposit likely doesn`t matter significantly, but I`d say 5k initial and 15k additional would be sufficent.

I would make sure you can use this space for personal use. Some condos have restrictions that you need to be aware of. This will come out in the condo doc review, but make sure you specify.

The negotiations. Its hard to give advice as its very situation specific. Just have a price in mind and move towards that price.

I do think you should be using a Realtor who will be looking out for your best interest. The process of buying a condo is a little tricky and, nothing personal, I can tell your new to this particular type of real estate transaction. Using one doesn`t cost you any money. The listing Realtor can be of some assistance, but he was working with the seller first.

Just my words of wisdom. Let me know if you have any more.

Dave

 

[dpeacock]

Thanks for you input Dave.
I should clarify. When i said "personal use", i meant to run my own business, rather than lease it out.
I`m going back to look at the property again.
Appreciate your remarks.

QUOTE (DaveRhydderch @ Dec 16 2010, 02:27 PM) Hi Dan,

You need to make your offer conditional to a condo document review, property inspection and to an appraisal/financing. Note that if the appraisal is less, than you can back out or negotiate a lower price if they will accept that.

Deposit likely doesn`t matter significantly, but I`d say 5k initial and 15k additional would be sufficent.

I would make sure you can use this space for personal use. Some condos have restrictions that you need to be aware of. This will come out in the condo doc review, but make sure you specify.

The negotiations. Its hard to give advice as its very situation specific. Just have a price in mind and move towards that price.

I do think you should be using a Realtor who will be looking out for your best interest. The process of buying a condo is a little tricky and, nothing personal, I can tell your new to this particular type of real estate transaction. Using one doesn`t cost you any money. The listing Realtor can be of some assistance, but he was working with the seller first.

Just my words of wisdom. Let me know if you have any more.

Dave

 

[Thomas Beyer]

business condo .. for personal use ? to live there ? or to use as your own office ?

10K first deposit and 30K 2nd seems about right ..

$400/sq ft sounds pretty high. is this a concrete high rise in a primo location ? What could you rent this for if not used by yourself ?

make it conditional on "Viewing, review of condo documentation and appraisal satisfactory to purchaser" .. say for 4 weeks .. then you can walk or waive conditions or waive conditions with a reduced price (of course, at the chance that you loose it or seller says "yes")

Why tie up so much cash .. why not rent one ? there is a GLUT OF OFFICE SPACE in Calgary these days !!

 

[gwasser]

QUOTE (ThomasBeyer @ Dec 17 2010, 12:52 PM) business condo .. for personal use ? to live there ? or to use as your own office ?

10K first deposit and 30K 2nd seems about right ..

$400/sq ft sounds pretty high. is this a concrete high rise in a primo location ? What could you rent this for if not used by yourself ?

make it conditional on "Viewing, review of condo documentation and appraisal satisfactory to purchaser" .. say for 4 weeks .. then you can walk or waive conditions or waive conditions with a reduced price (of course, at the chance that you loose it or seller says "yes")

Why tie up so much cash .. why not rent one ? there is a GLUT OF OFFICE SPACE in Calgary these days !!

If you want to own it, why not make it an optional buy. You rent and if you like it you have the option to buy it. Lots of advantages.

 

[dpeacock]

Thank you for your input, much appreciated.


Dan