Putting an offer in on a salon-please help!

[Nateice]

Hi Geeks

Just wondering if any of you can help.

I have found a shop to rent, which I am about to put an offer on. I have checked with the council with regards to Business rates and change of use and all seems fine. I also know the length of lease.

The Estate Agent I am dealing with has said he has 2 offers on the property already one at asking price and one just below, I know E/A'S say this all the time but it is weather I take the chance of trying to negotiate with the chance of loosing it or just go in at full asking?

If anyone else has been in the same position, how cheeky have you been with your offers with regards to the percentage that you went in lower than the asking price?

Also do I need to know anything else before I put in an offer?

Many thanks in advance x

 

[BannerPenguin]

I think it's relative to the state of the shop. If it needs work then take this into consideration. Also take in consideration the amount of money it will cost you to change the use and to kit it out.

I would negotiate by how much is hard to say. 10% below can be good starting point. Most estate agents are glorified sales men and are mostly all full of s*** so I would ignore most of what they say ha.

 

[Nateice]

Thank you BannerPenguin, I couldn't agree with you more as I used to be one lol (residential only though). Commercial leases are a whole different ball game and I was just wondering if I am missing anything before I put the offer in?

 

[persianista]

It depends on area. The really good areas don't stay empty long, and I'm seeing people compete for my salon right now. Landlords can be picky about who they grant a lease to, and may be nervous if they think you can't afford it, or are underfunded.
My shop has never actually gone on the market, yet there are five people fighting it out over it. The one that asked for a 3 month rent free period isn't even being taken seriously.
My advice is to look at the area. If there are tons of empty shops, then bargain hard. If there are no other empty shops, then compete.

 

[Nateice]

Thank you Pesianista, that is really good advice. Unfortunately for me the property is in a really good area and the shops get snapped up really quickly, although it does need work, mainly cosmetic and new flooring. Very interesting point you made about rent free period if I am competing with others.

Many thanks