Rules of Real Estate

Most Deals Die

It is the unavoidable tragedy of real estate...

Nobody, and I do mean NOBODY is that astute of a deal maker that they never lose a deal every once in a while (Without constantly giving away the farm, that is). The darn things seem to have a life of their own and sometimes just seem to blow up for the strangest reasons.
In most cases; you can't predict it, but you can prevent it from ruining your day.

A good point to remember is that most deals don't just die because of an obstinate owner or his attorney (although that does happen from time to time!). The property or building could fail an environmental inspection, the municipality could deny you a building permit, a variance or special use permit…or a competitor could enter the picture in the eleventh hour of your negotiations with a better deal.

Whatever the reason, every deal at some point reaches a phase where it appears on the brink of falling apart and sometimes over the smallest of issues. It is in that precarious situation where both parties stand fast, cross their arms and refuse to budge. It's Okay to blink, just don't close your eyes...

Because this is a very dangerous time and you must keep in mind that the deal your working on could, may, has or will die. Remember; Never Fall In Love With A Location.

And never make the mistake of "chasing" a deal by throwing money at it or giving in on an issue that can hurt you someday. Stand your ground even if it means losing the deal. Bear in mind the Landlord has a motivation for dealing with you as well and they may come around.

If not be prepared for it, by having market planned your area and having interest in two or more properties. By running with a couple of sites at the same time you are more likely to negotiate a good deal from a better position.

"Deal Creep" happens when the project you've been working on gets progressivly worse as it goes on...sometimes unnoticed. Always make a point of reviewing the current state of a deal at various times during the negotiations and before you sign, make sure to have a clear discussion about the changes that you've made with your attorney.

…Always have a plan "B"


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