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Which side of making an offer should certain due diligence be done?


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Hello,

I'm looking for some advice around making offers on properties which may be suitable for conversion. I'm interested in converting commercial properties to residential but I'd also be interested in what people with purely residential development have to say. I've not bought a commercial property before and I'm wondering about the following actions and whether they would normally be conducted before making an offer or after an offer is accepted:

- Appointing a planning consultant to advise on permitted development for change of use.

- Appointing an architect and having them advise on the potential reconfiguration.

- Engaging with contractors/builders for quotes or full tender process.

I may be 90% sure that permitted development would be granted, have a good idea of what configuration might work and have a reasonable idea of what the development costs would be, but still not quite be willing to committing to buy it without being more sure about the project's viability.

If I did all of the above before offering, that could cost thousands of pounds only to have my offer rejected.

If I did all the above after an offer is accepted and it emerges that permitted development is less likely that I thought or the development cost is going to be a lot more than I thought, is it normal for a developer simply to pull out of the deal at that point?

Not having done the whole process before, I'm keen to know how people de-risk this process. 

Looking forward to hearing what you have to say. Thanks in advance!

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