Oftentimes motivated sellers are misrepresented as desperate or willing to take any offer to get out from under a piece of commercial real estate. The reality is that they could be motivated for a number of other level-headed reasons and they aren’t really waiting for someone to come along with a lowball offer at all. The way you approach a motivated seller will determine how well your negotiations go and whether you actually come out ahead or not.
NYC Commercial Real Estate
Before you even begin putting together an offer to a motivated seller, take a moment to reach out to them and ask what their motivation is. Some external factor is motivating them to sell and it may not just be a specific dollar amount. The best way to work with a motivated seller is to make an offer that clearly and concisely addresses their need to sell and takes into account their timeline.
Be Kind and Honest
Many motivated sellers get frustrated with buyers who are clearly trying to take advantage of them. Ridiculously low offers can be equally offensive to a motivated seller, as an unmotivated seller and they will be just as likely to reject you. Instead, be fair in your offer and honest about your intentions. If you have already taken the time to understand their side of the deal, you have plenty of room to build on that connection and explain your side of things.
Think Outside The Box
As we mentioned above, sometimes sellers are looking for something other than a simple payout short term. In fact, they may be willing to work with you for more favorable terms even without a steep discount on the list price. Consider things like financing options, down payments, and interest rates. It’s up to you to think of ways that you can formulate a mutually beneficial arrangement even if it is a long play.
Make Yourself Known
Once you have completed a few successful deals with motivated sellers it is possible to begin marketing yourself as a regular buyer of commercial real estate. When a motivated seller reaches out to a broker and says they are ready to list their property, they will know to call you first. This will bring more opportunity to your door, even if you don’t move on every single deal.
There are new properties being listed each and every day. As commercial real estate lingers on the market for an extended period of time, the sellers may become more motivated to sell. This creates a big opportunity for investors to work with more flexibility and negotiating power than before. The key is to approach every situation with an open mind and really try to understand what is motivating the seller to place the property on the market.
Preeminent NYC Commercial Real Estate Brokers
The Team at Handler Real Estate Organization have decades of experience working out deals with motivated sellers. To learn more about currently available properties and today’s opportunities for savings, call 212.398.1888 – or – click the icon below for a free consultation.