Prospective buyers quite often seek the help of an agent in order to find a suitable property. Likewise, sellers also use agents to market property. Usually, around a 6% commission off the purchase price is paid by the seller, which goes to the seller’s agent or it is split with the buyer’s agent, of course, if there is one. Adam Hochfelder is the Managing Director of Acquisitions and Development at Merchants Hospitality. He has an established track record of enhancing asset value and tenant services while reducing operating costs, through confirm performance, dedication, and stability. Adam has a proven track record of helping clients acquire their corporate or dated properties, ensuring that their real estate strategy supports their overall business objectives.
The prospect for real estate acquisitions has changed dramatically over the past years, causing a complicated array of challenges and opportunities for real estate owners and developers. Adam Hochfelder has deep industry knowledge and experience to guide clients through the acquisition of real property in every phase of the real estate cycle. Below are the most important elements of acquisitions that this real estate wizard believes matter the most.
Once the client or the prospective buyer finds a suitable property and decides to purchase it, a written offer is generally made, in the form of a letter of intent, prepared with the assistance of the buyer’s agent. Then the buyer and the seller negotiate and agree to the terms of the letter, such as the purchase price and other general business terms of the transaction.
After all issues of the letter of intent have been considered and taken care of, the parties will start a formal purchase and sale contract, which will again include the terms from the letter of intent, along with other relevant contract terms. Often buyers are requested to put a money deposit with an escrow agent. The money deposit is usually fitted to the purchase price. This deposit can be refunded to the buyer in case the buyer terminates the contract within the given period of time, before the closing date.
According to Adam Hochfelder, the buyer’s obligation to purchase the property in accordance with the sale agreement usually depends on a number of factors, and a proper inspection of the property to ensure it is in the suitable condition is among the most important ones. Buyers normally ask the seller to provide title insurance, in order to secure themselves from defects in the property’s title. The official assignment of the property from the buyer to the seller is done at closing, often coordinated through an escrow agent. Both seller and buyer are required to be represented by legal entities, to ensure that all documents are properly completed, and funds are successfully transferred.
In most states, paying certain taxes for the transfers of real property is a must. Although it is usually the seller who pays the transfer tax, this can be negotiable. Adam Hochfelder continues to stay focused on his charity goals and works closely with low-income housing. On the other side, he pursues a stable relationship with his clients, allocating their risk appropriately, ensuring the soundness of each transaction, and closing the deal swiftly and successfully.