Environmental due diligence gives the seller an opportunity to correct any issues prior to listing the property, that the buyer’s consultant would likely find. This gives the seller the opportunity to increase the asking price for the property. To give a parallel example, it’s like knowing you need to re-roof your home in order to increase its value prior to putting it on the market. Performing environmental due diligence before listing the property can give the seller the opportunity to list it at a higher price.
Knowing your property gives you the upper hand in negotiations.
Being ahead of any pain points the buyer might have, will give the seller an advantage in negotiations, because you will not be surprised by any unknown weaknesses or contamination. This gives the seller an upper hand in knowing the true value of their property during the listing and subsequently the negotiations with the potential buyer.
Also, when it comes to listing the property…
From a seller’s perspective, environmental due diligence prior to listing a property for sale can also help market the property and attract potential buyers. Being able to list the property with a full explanation of the environmental condition allows buyers to understand their potential purchase as they are reviewing different sites and comparing their options. By performing the environmental due diligence and listing those details in the property description, it takes a lot of the mystery out of the buyer’s experience, and this creates trust between the potential buyer and you, the seller.
It also affects due diligence periods – and therefore can speed up your sale.
Additionally, environmental due diligence periods provided in the purchase sale agreements typically give 30 days to perform the Phase I Environmental Site Assessment. Having the Phase I performed prior to listing can shorten any agreed upon due diligence periods. This can help move your property more quickly off the market, allowing both parties to move forward in their business quickly and efficiently. Additionally, environmental due diligence periods provided in the purchase sale agreements typically give 30 days to perform the Phase I Environmental Site Assessment. Having the Phase I performed prior to listing can shorten any agreed upon due diligence periods. This can help move your property more quickly off the market, allowing both parties to move forward in their business quickly and efficiently.
