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Brown Borkowski & Morrow
  • Home
  • Firm Overview
    • Why Hire Us?
  • Our Team
    • Attorneys
      • Susan Leigh Brown
      • Thomas J. Borkowski, Jr.
      • Matthew N. Morrow
      • David James Eagles
      • Mary A. Mahoney
      • Sara Gorman Rajan
    • Support Staff
  • Practice Areas
    • Business & Corporate Law
    • Business Property Tax Appeals
    • Family Law
    • Estate Planning
    • Probate & Estate Administration
    • Trust Administration
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    • Insurance Defense
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Tips for negotiating the purchase of commercial real estate

On Behalf of Brown Borkowski & Morrow | Feb 23, 2023 | Real Estate Law |

Commercial real estate purchases require Michigan buyers to be at the top of their game if they want to negotiate effectively. You need to feel strong to be strong. Here are some ways to prepare for the challenge.

Talk to a lender

In residential transactions, real estate agents suggest that buyers obtain a lender’s preapproval letter to submit with the offer. Commercial property generates income, and you won’t be able to verify that information until you see the seller’s accounting records after an offer is accepted. Because of that, you may talk to a lender about your credit score and estimated purchase price, but you most likely won’t receive a loan preapproval. However, there are other ways you can prepare.

Research the market for current sale prices

Research your local real estate market. Know the size and age of the property in question and search for recent similar sales in your area. County property tax sites usually provide a multitude of filters for advanced searches.

Investigate additional revenue sources

Perhaps adding vending machines or paid parking at the site is possible. If so, you may be willing to pay more for the property. However, don’t disclose your intent. The seller may refuse to lower the asking price if you do so.

Familiarize yourself with the building’s features and surroundings

Take notes as you walk through the property. Worn-out carpets, peeling paint, broken tiles, an aging HVAC unit and empty offices are all potential negotiating points. A less-than-stellar neighborhood may also be a reason to lower an offer price.

Stay neutral

Don’t become so attached to the property that you want it, no matter how much you have to pay. That’s an excellent way to go broke, and lenders usually want to ensure that the property’s income covers the monthly mortgage payment plus a 25% cushion. Lower the offer or be prepared to walk away if the numbers aren’t working in your favor.

Understand the contract

Commercial real estate law is complex, and thus the purchase contracts reflect that. Read it carefully because some unfavorable negotiable terms may lie buried in the legal wording.

Contact a commercial real estate agent or another experienced professional for assistance if you’re uncomfortable handling the negotiations.

Key commercial lease clauses Michigan business owners must know

On Behalf of Brown Borkowski & Morrow | Jun 6, 2025 | Real Estate Law

Leasing commercial space is an important step for your business. Before signing, make sure you fully understand what you are agreeing to. A commercial lease is a contract that can affect your establishment for years. The terms can increase costs, limit your options or...

No will? What parents should know about their children’s future

On Behalf of Brown Borkowski & Morrow | Jun 4, 2025 | Estate Planning

If something happens to you tomorrow, will your children be in good hands? Estate planning may sound like a lot of work, but more than anything, it is an act of love and responsibility. It is about protecting your children’s future, ensuring their best interests long...

Probate vs. non-probate assets: What is the difference?

On Behalf of Brown Borkowski & Morrow | Jun 2, 2025 | Estate Planning

When someone passes away in Michigan and there is no will in place, their representative settles their estate according to probate laws. An essential part of that process is understanding the difference between probate and non-probate assets. Knowing what does and...

What is Michigan’s law on tenant rights and eviction?

On Behalf of Brown Borkowski & Morrow | May 20, 2025 | Real Estate Law

If you're a tenant in Michigan, understanding your rights is essential. Tenant rights laws are designed to protect you from unfair treatment and ensure that landlords uphold their responsibilities. In Michigan, there are rules that govern the landlord-tenant...

What is a special needs trust?

On Behalf of Brown Borkowski & Morrow | May 16, 2025 | Estate Planning

A special needs trust helps ensure that your loved one with disabilities receives the support they need while protecting their eligibility for government benefits. These trusts are specifically designed to preserve access to programs like Medicaid or Supplemental...

How is business debt handled during a divorce?

On Behalf of Brown Borkowski & Morrow | Mar 21, 2025 | Family Law

Going through a divorce is challenging, especially when you own a business. Business debt can complicate the process, and understanding how you’ll handle it can make a difference in your settlement. If your business has debts, it’s important to know how those...

How can companies prevent IP theft in the digital world?

On Behalf of Brown Borkowski & Morrow | Mar 7, 2025 | Business & Corporate Law

Businesses use intellectual property (IP) to stay ahead of competitors. IP includes copyrights, trademarks, patents, and trade secrets. These protect creative work, brand names, inventions, and private business information. In today’s digital world, it is easier than...

How does the bundle of rights affect property ownership?

On Behalf of Brown Borkowski & Morrow | Feb 20, 2025 | Real Estate Law

Property ownership includes more than just having a physical structure or land. The "bundle of rights" is a legal concept that explains the different rights attached to real estate ownership. These rights allow owners to use, transfer, and control their property in...

How does Michigan law address parental relocation?

On Behalf of Brown Borkowski & Morrow | Feb 6, 2025 | Family Law

Parental relocation can be a challenging issue after a divorce or custody order. Michigan law has specific rules to ensure that moving does not negatively affect the child’s relationship with both parents. If you share custody and want to move, you must follow legal...

What should seniors know about Medicaid’s look-back period?

On Behalf of Brown Borkowski & Morrow | Jan 23, 2025 | Elder Law

Understanding Medicaid’s look-back period plays a critical role in planning for long-term care. This policy directly affects eligibility for financial assistance with nursing home expenses. Proper planning avoids costly mistakes and ensures access to necessary care....

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Recent Posts

  • Key commercial lease clauses Michigan business owners must know
  • No will? What parents should know about their children’s future
  • Probate vs. non-probate assets: What is the difference?
  • What is Michigan’s law on tenant rights and eviction?
  • What is a special needs trust?

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Brown Borkowski & Morrow
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Farmington Hills, MI 48331

Ph: 888-757-1681

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