This is seemingly an easy question to answer, right? You should instantly be able to discern an offer’s benefits and whether the offer is a good one.
In practice, the determination of the BEST offer is maybe not as simple as one would believe.
Today, I want to explore the characteristics of a good offer for your commercial real estate and what makes it the BEST offer.
Most sellers of commercial real estate gravitate to the price offered vs. the asking price. If the offer is at asking price, cool! Game on. If the offer fails to reach the asking price expectation, it is summarily discarded. Finally, if the offer eclipses the asking price – silence ensues as a quick determination is made – did you ask too little?
However, the offer with the highest price may not in fact be the best offer. Recently, we received an offer for a project we lease and manage. The buyer planned to tear down the existing buildings and construct multi family. The buyer was prepared to pay a huge number for the real estate – and well above market. The problem was he wouldn’t close for eighteen months – no deal!
An original post on AllenCBuchanan.com on January 20, 2017 written by Lee & Associates’ Allen Buchanan in Location Advice – California Businesses
