How to Negotiate and Save Money When buying Land for a Mini-Storage Building
Self-storage buildings have become a popular reason for buying commercial land, but before you part with your cash, it is essential that you get a good piece of land in a prime location to ensure your success. You will also need to negotiate effectively so that you end up with a location that works and a price that will allow you to become profitable as soon as construction is complete.
3 Simple Steps to Achieving a Great Deal on Your Self-Storage Land
It is clear that to achieve a decent price for your commercial land, you will need to know how to negotiate effectively, especially when you consider that there are great bargains to be had if you are confident enough to work for them.
COVID-19 has reduced the amount of new commercial properties being constructed, meaning that there are fewer commercial sales going through at the moment, which makes it a great time to get a bargain and drop that price to a number that you can afford.
In reality, there is no guarantee that you are going to get an amazing deal if you are looking to buy now unless you have a solid buying strategy and a willingness to walk away and look elsewhere if the seller is not forthcoming. We’ve shared three tips that you can use to help you get the best price for your self-storage building land.
Approaching the Initial Offer with Common Sense
When you find land that you are interested in, you will take the asking price and then offer a price that reflects the bottom end of what you are willing to pay. In reality, there will be plenty of back and forth during the negotiation stage, but the best way to handle it is to take a balanced approach.
Many people choose to go in with an offer that is vastly below the asking price in the hope that the seller comes back with an offer that you can afford. The danger with this being your strategy is that the seller may just refuse to engage. However, if you want land that is out of your budget, then this may be the only way to start a dialogue with the seller.
Getting the deal done requires you to have the most accurate and up-to-date information about the land and what you are willing to pay so that you always have something to go back to the seller with. Some of the key areas you need to consider and evaluate are:
- Whether there are wetlands near the land
- What easements are there
- Zoning requirements
- The topography of the land (including a boundary survey where possible)
- 100-year flood limits
Any information about this from the agent or the seller should be provided in writing so that you always have it to refer back to later on in the negotiations.
Learn How to Maneuver
The next stage in decent negotiations is knowing how to maneuver when the deal is not going the way you want. This stage is needed when the seller rejects your initial offer or when they counteroffer over your budget.
Maneuvering is when you re-offer your initial offer, but with the information, you used to come to the price you gave. This means explaining the research you did and sharing it with them so that they can feel informed and ready to consider your next offer.
If the offer is refused again, then ask what the seller is willing to do to make the counteroffer attractive to you. This puts the onus on the seller to offer more so that you can make a further counteroffer in the hope that it will be accepted.
One area that is great for maneuvering is the option time. In reality, you will want the longest time to get everything done, and the seller will want the shortest. Initially, suggest a time that will work for you and then add a couple of months on so that you have wiggle room. If you want to get a long option time window, then you may need to increase the deposit you offer. You can typically get your deposit back during the due diligence process without any issues. However, it does make sense to add a stipulation to your negotiations so that you don’t end up with land that you are unable to use for a storage building.
Renegotiate with Confidence
If you find that the information you used to make your offer is not what you have found during your due diligence, then it is time to renegotiate! However, the seller does not have to accept your renegotiated terms, and you don’t have to move forward with the sale, so the aim during this process is to find a solution that works for you both.
The best way to achieve the outcome you want is to provide the seller with indisputable proof that whatever was on offer is not as it was advertised. Sharing what you think is a fair price at this stage will help the seller come back with an offer that you can then choose to go with or to pull out from.
Buying Your New Commercial Storage Building
After you have taken ownership of your new land and prepared the site for construction, then it is time to install your prefabricated self-storage building. The great thing about metal storage buildings is that they come in a range of options, including mini storage buildings and climate-controlled storage buildings, so that you get the finished result that you are looking for.
Storage buildings are easy to install and will withstand the test of time, allowing you to get the best return on your investment for many years to come. Plus, they are fire-retardant and pest-resistant, meaning that your storage solution will be superior to any other type of building.
Buy with Confidence
When you are negotiating on a piece of land and working hard for a great deal, then you will want to feel confident that the storage building you later install will provide you with a decent level of commercial income. Using Storage Building Central to get your prefabricated storage building is a sensible choice as we are the leading supplier in the US and have over twenty years of experience.
All our buildings are delivered quickly and come with warranties that will give you confidence and security. Call our team today at +1 (844) 315-3151 to arrange a quick quote!