In the realm of real estate transactions, whether you’re selling or buying, transparency is of utmost importance. Adopting a fully transparent approach can save significant time and money. Sellers who disclose everything from the outset can avoid delays and potential issues down the line. Buyers, in my experience, greatly appreciate upfront information and are more likely to proceed with the transaction. If a buyer decides to walk away due to disclosed information, they likely would have done so during the due diligence process regardless.
Moreover, full disclosure shields you from costly legal battles, which can be burdensome whether you are in the right or wrong. In today’s environment, transparency is not only prudent but essential.
Key items that must be disclosed or thoroughly understood include the condition and type of the roof, HVAC equipment, fire retrofit status, window age and quality, exterior brick condition, balcony condition above and below, metal flashings, walkways, and drainage around the building. Environmental concerns such as buried oil tanks, asbestos, and mold also require careful consideration.
Additional items to inspect may include parking lot pavement, lobby and interior hallways (including lighting and ventilation), underground parking and concrete condition, settlement issues, termites, elevators, interior suite condition, tenant profile, and staff.
Allowing the buyer to inspect what they wish and setting reasonable timelines to resolve any discrepancies is always advisable when dealing with a motivated buyer. As a seller, avoid overselling and making promises you cannot fulfill. Controlling the negotiations by only committing to what you can deliver in the agreement of purchase and sale is crucial for the success of the transaction.