29 Jul What Will the Seller Accept as a Fair Price?
This post originally appeared on tBL member Lynn Drake’s blog Compass-Commercial Blog | Expert Commercial Leasing Advice and is republished with permission. Find out how to syndicate your content with theBrokerList.
I often get this question on leasing and buying buildings. No matter which side you are on, you will convince yourself you are right. The issue with buying a building is that sometimes the buyer paid to much and can’t afford to sell the building for less. Many people who aren’t professional landlords will believe their building is worth more than the rest of the buildings on the street just because they made a few changes to the space.
Once I wanted to buy a building and I knew the buyer had the building listed for $100,000 more than what it would appraise for. I wrote the offer with a sales price based on their asking price with the contingency that if it appraised for less than the agreed upon price, the lower price would become the sales price. They wouldn’t take the offer and held onto the building for two years until the value went up enough to cover what they thought it was worth. Their listing agent ended up giving them the listing back as it was impossible to get them to understand the market.
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