Friday, March 6, 2009

Reverse Offers

What I'm see in the commercial market right now is a stand-off. Sellers know it's a soft market but find it difficult to lower their list price, which may not be smart, but it's understandable. And the Buyers are looking for really good deals, which also makes since. But Buyers are a little punchy too because they're looking for the bottom of the market and wondering if there are going to be better deals in six months. And thus, the classic stand-off.

This may sound silly, but I have a couple of contracts in the title company right now because of reverse offers. I'm finding that Sellers will take less, and sometime a lot less, but want to avoid getting taken to cleaners. The lack of communication is slowing transactions.

Once I know a potential Buyer has interest in my commercial tract [perhaps because they have asked for significant information], but is reluctant to bring an offer because they believe there is too much difference between the list price and what they want to offer, I have my Seller make the first offer.

Yep. Sometimes the prettiest girl at the dance has to get things started on her own.

With my clients, I'm really just looking to get the ball rolling. When you get two parties talking, good things can happen for both of them.

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