When making a real estate deal, who pays for features that the buyer want to have included on the building?

I have an older work building on a lot. My interested buyer says he needs heat and a new roll up garage door. Also he said he needs to have a new roof on an add on building. How do you work that in the deal? Who should pay for that? I feel the buyer should pay more for the building if I improve it. But I know with this market the buyers may be able to name their wants and price.

i wouldn't touch anything without a contract.
at present you have a lot with "service" (hydro, water, etc).
the building in it's present condition..is"what it is"
hire a"professional commercial appraiser"
they know your area they know what the bank will lend on.
then you have some price range to work in.
without a contract..and you start changing the building does not mean it will be bought..
the buyer has cash and can go anywhere..
anotherl city/district.. they are not bound.
if you can not write a "binding contract" hire a realtor..

good luck

For items such as these, there is no hard and fast rule about who should pay. It is generally an agreement between the two parties. Try to negotiate to pay half, that's probably the most fair.

N E G O T I B L E and that always means if you don't ask for it they can't say no either! You can give him permission to do the repairs and maybe reduce the rent to help pay for a part of it if you think it will improve the value and if they sign for a long enough lease! I'd be going to the bank for a refi and see how they feel about this kind of risk. They are part of your team-your lensing side as it were and they may not feel it's a good risk. If they don't then I wouldn't agree to the deal. If you can't use (OPM) other peoples money then don't use your own! Now that you own a commercial property you shouldn't have to risk your own money unless the deal is incredibly sweet-don't you think? Now I don't know your financial situation so it may not be an issue of want it may e a need but, you can still apply the same principles and talk to the bank it will give your instincts a checkup and that's always nice to have a conservative opinion in your pocket! Just my 2 cents.

well, the add on building is his problem.
Is the roof leaking? Does it really need to be replaced? would it fail an inspection?
If building never had heat - that would also be his problem - the only things you might have to pay for or lower your price to adjust for them is the roof - IF it's in bad shape and maybe the rollup door if it's not working - otherwise, tell him your price is firm and valued as is - maybe lower it a few thousand due to generally poor realestate market , but you shouldn't have to build an addition for him - let him pay for that after he buys the building

Everything that is not illegal is negotiable through a purchase contract. However, be careful what you agree to do. If your buyer wants improvements, each party should get bids so you know the approximate amount of money involved before making a decision. Be very exact in what you agree to do. For instance, if a buyer of vacant land asks seller to bring PG&E to his building site as a condition of purchase, but moves the building site 2 miles from the closest power source, you might as well give the property away. Far better to agree to bring PG&E to the nearest property boundary convenient to the seller, an expense the seller can obtain a firm quote prior to signing anything. Easiest solution is to start with the purchase price, sell the building as is (with a legal contract and separate as-is addendum) and give the buyer predetermined amount of credit or cash through escrow toward repairs to be done after close of escrow. It sounds like your buyer wants to get a good deal...who doesn't? I would recommend you hire a trustworthy real estate agent to negotiate and properly prepare paperwork so there are no surprises.