Negotiating Property Purchase for Client

Today, I started the process of acting for a client for the proposed purchase of a commercial property. Following is a list of reasons why appointing an independent representative to act on your behalf, when negotiating the purchase of a property, may help you make the whole process a lot less stressful:

• The independent representative usually does not have an emotional or financial stake in the transaction, which may increase your chances of achieving your budgeted purchase price
• Depending on your relationship with the representative, they are likely to take into consideration all aspects of the transaction - legal, taxation, deposit, acquisition costs (stamp duty, title office fees, etc.)
• The seller's agent should deal directly with the representative, and avoid any undue pressure to sign a contract

In my client's case, the following factors were able to be considered, as they are a Total Service Client of McKinnon Financial Planning:

• detailed preliminary planning to ensure the maximum purchase price was determined, before starting negotiations with the agent
• taxation issues were considered, in conjunction with the client's taxation adviser, such as the GST payable on the purchase, and timing of subsequent refund of same
• detailed cash flow was completed to ensure monies were available for the deposit, payment of the GST, property acquisition costs (stamp duty, legal fees, etc.), mortgage loan costs, and other related fees and costs
• comparison of ownership structure (self, family trust, self-managed super fund), to ensure the maximum benefit for the client at time of purchase, medium and long term
• referral to experienced legal adviser, to ensure the purchase contract is structured correctly, and settlement is completed on time
• mortgage loan recommendation was completed, to provide additional funding required - subsequent mortgage application will be completed, documents signed, and settlement co-ordinated with the lender and the legal adviser

Now all the client has to do is wait for their offer to be accepted, and I will take care of the rest!

Of course, each client's situation will be different, and some independent representative may charge a fee, or be paid a commission from the property seller, or their agent (which may inflate the price of the property), so make sure you understand exactly what service is being offered to you, and how much it will cost you, before appointing a representative to act on your behalf for the purchase of a property.

If you would like to discuss your particular property purchase requirements in further detail, don't hesitate to Contact Us, and arrange a free assessment.