It’s a seller’s market, especially when it comes to industrial properties. Currently, I’m representing clients that have multiple offers on their properties. It’s a lot to sort through, and every broker wants to help the seller pick the best one. So, how do you get the right deal under contract? How do you find the deal where the stars align?
Although a seller’s priority is to make the most money possible, sometimes the highest offer isn’t always the best. Here are five additional things to consider when picking the right deal:
1. What is your goal for selling? Do you want cash as soon as possible? Are you looking to reinvest in another property? Are you looking to structure the proceeds as income? Knowing your goal ahead of time can help you decide if the deal matches what you need.
2. What’s your timeline? Perhaps you need to quickly sell a property because of your goal. Typically, deals take two to three months to close, but I’ve also seen them take much longer.
3. Does the potential buyer have their financials in order? The strength of their financial story is important. You don’t want to pick a shiny number and then risk the deal falling apart. You may end up losing a “for sure” sale with someone else. Understand how they are financing before making your choice.
4. Do the contingencies favor the buyer or the seller? Are there too many? What is the length of due diligence? You don’t want to be tied up in a deal that slowly moves along, but eventually falls apart. Pick the set of contingencies that work best for your situation.
5. Is the buyer decisive? How much does the property match their needs? Finding out the answers to those questions can help predict if the deal will make it to closing. Your broker can interview them to search for any signs of the buyer’s commitment level.
Picking the right deal, begins with working with the right broker. You want to make sure you have the best person on your team to help you navigate the deal. They should strongly advocate on your behalf and keep you up to date. You want a broker or brokerage team that makes the process as smooth as possible. I’m here to help if you have any questions (612-788-1552 or jeff@CEGspaces.com).
Jeff Salzbrun is the owner and broker of Commercial Equities Group (CEG). As a veteran-owned real estate brokerage, CEG has been involved in thousands of sale and lease transactions, ranging from single offices to 250,000+ square foot buildings. At CEG, we get your deal done. We know space, and we know the CRE business.
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