Commercial Real Estate Broker · Denver, CO · Member since 2015 · 38 posts · 8 votes
I'm looking at a commercial piece of property that is a For Sale By Owner property. The owner is older, very difficult to deal with, very unmotivated, and out-of-town... and in my opinion has the property over priced by about 25%. The property needs a LOT of work (currently vacant & rundown, would be a redevelopment project) but, has good return potential (buy and hold). So, my question is- how have you all dealt with difficult owners? Any tip, tricks, or lessons you can share with me is greatly appreciated.
I've spoke with him on the phone which, was painful to say the least. I'm considering mailing him an offer letter (below is asking price) but, it's likely I'll lose him if I can't grab his attention with the letter. Hell, maybe the letter is the wrong approach so again, any tips or tricks is greatly appreciated!
To answer the question in your subject line - You don't! You spend your time looking for motivated sellers. Don't waste time trying to convince unmotivated sellers.
The best strategy is simply be polite respectful and helpful. Follow up from time to time to see if he has come to his senses. I have had many sellers come back to me up to a year later with a deal that made sense. They called me because of the way I treated them when I first spoke with them.
It is worth a shot sending him an offer but I haven't found that effective.
It's always weird when you run up against a seller who is selling but doesn't really want to sell. I had almost this same scenario in working with one of my buyers a couple months ago. To be honest there really isn't too much you can do other than find his "pain point". He may not have one though and then it won't matter.
If you are that interested in it then I'd give him your offer and paper and maybe when he sees it he might sign it. Not too many other options that I know of.
@Aaron Wyssmann, thanks! Would you suggest writing up a contract with my offer price (assume the sale approach) or a letter simply stating the offer and supporting reasoning for such an offer?
I'd write up a formal offer. You can provide the information for how you came to your number, that helps some. Most sellers though like the guy you're taking about will see you reasoning and pick it apart but I don't think that it hurts to send it. It at least gives you something to talk about and negotiate from. Let me know how it goes.
To answer the question in your subject line - You don't! You spend your time looking for motivated sellers. Don't waste time trying to convince unmotivated sellers.
The best strategy is simply be polite respectful and helpful. Follow up from time to time to see if he has come to his senses. I have had many sellers come back to me up to a year later with a deal that made sense. They called me because of the way I treated them when I first spoke with them.
It is worth a shot sending him an offer but I haven't found that effective.
@Matt Dorsten, but please, don't get sucked into upping your pre-determined Maximum Offer. Stick with your numbers, which don't include attachment to the idea of "getting this deal regardless" or "winning against this Seller". Cheers...