Acquiring a commercial or investment property is an exciting venture, but it’s critical to approach the process with due diligence. Before signing a commercial real estate purchase agreement, here are five key considerations that can save you time, money, and stress while securing favorable terms.

#1. Ask for an Appraisal Contingency

An appraisal contingency protects your investment by ensuring the property’s price reflects its fair market value. If the appraisal, conducted by a certified MAI (Member of the Appraisal Institute) appraiser, comes back lower than the agreed price, the seller automatically agrees to reduce the price accordingly. Since appraisals are ordered by the lender and are unbiased, this clause safeguards you from overpaying.

#2. Include a 30-Day Financial Contingency 

Securing financing is a cornerstone of any property transaction. By requesting a 30-day financial contingency, you provide yourself with ample time to obtain a commitment letter from your lender. This buffer ensures you’re not rushed into making decisions and allows lenders to conduct their due diligence for the best loan terms.

#3. Negotiate a 15-Day Automatic Extension Clause  

Delays in loan processing can happen, especially with certain loan types:  

  • SBA loans: Typically take 60–90 days to close.  
  • Conventional loans: Often require 30–45 days.  
  • No-income verification loans: Usually need around 30 days.

A 15-day automatic extension clause ensures that you won’t have to pay for costly extensions in case of minor delays. This flexibility keeps the deal on track without unnecessary pressure.

#4. Work with an Experienced Commercial Realtor 

A seasoned commercial realtor is invaluable when navigating complex real estate transactions. They will negotiate favorable terms, guide you through zoning regulations, and handle the fine print to ensure a seamless process. Partnering with a reliable expert ensures you’re fully informed and positioned for success.

#5. Request Seller Contributions Toward Closing Costs  

It’s worth asking the seller to contribute a fixed amount or percentage towards closing costs. This contribution can offset expenses for third-party services such as appraisals, brokerage fees, and attorney costs. While not guaranteed, sellers willing to close the deal promptly may agree to help reduce your upfront costs.

Standout Commercial Loans Is Here to Help  

Navigating the purchase of a commercial or investment property requires expertise and a clear strategy. At Standout Commercial Loans, we’re committed to ensuring your financing process is seamless and stress-free. Have questions or need assistance? Contact us today and learn more about how we can support your journey. 

Secure your investment with confidence—reach out today!