What Will the Seller Accept as a Fair Price?

What Will the Seller Accept as a Fair Price?

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.

About the Author

Lynn Drake’s status is well known in the industry: She’s the commercial realtor focused on maintaining “true north” for her corporate clients. It’s a reputation built on 35 years of commercial real estate experience. Lynn became a commercial realtor in 2001 after 15 years in corporate real estate. Thus far in her career, Lynn has successfully completed over 1,500 real estate transactions ranging from small business tenant leases to the sale and purchase of industrial complexes.