I own a condo in a complex with 150 units. An investor has acquired over 80% of condos in this complex. He has made me an offer for my condo, but I do not want to sell. Based on some research I did online it seems that he may be able to force me to sell? Does anyone have experience with his?
My situation is similar to the link I post below.
No experience with it myself....but I have read up on it several times and yes it is a real possibility....I was researching as we do new condos and conversions on the Civil and land use planning side of things, and I wondered "what is the redevelopment potential for a small existing condo building in an undervalued location?"
In my research it seems that some states have newer protections that can be built into the condo in the form of specific bylaws following a certain date(s)...I'm not sure about AZ specifically, but it may be something to research. Of course it could be worthwhile to agree to a sale for a 10-15% premium....too much more than that and it may be more cost effective to force a sale, but if you don't get greedy you could come out ahead without dealing with too much of the other headaches.
Thanks for your reply. I had put significant renovations into the condo and have a great tenant in place, which is unlikely to be reflected thru sale price. Although negotiations to sell might be my only choice....
Sometimes things don't go to plan. I suggest put your emotions and your plan aside for a minute, be clinical and counter the offer with your preferred price. Just see how they respond, maybe you get your price.
Would you still want to stick to your "original plan" if this buyer was willing to pay you 30% more than you think the current value might be? To me that sounds more like "Advance to go, Collect $200!" Might be the perfect chance to profit then find a new opportunity and reset your plan!
You have a little bit of an information advantage most sellers don't... buyer is acquiring for a reason, it's not just random, you have a record of what prices this single buyer has been buying the other units. Look at the last 5 or 10 they bought, set your price higher.
Tyler Mullen, CFE
Thanks Tyler. Being as objective as I can is certainly my goal. I am interested in learning from other people's experiences with this, just in case my interpretation of the whole situation is not correct.
Hi Chang, a similar situation is arising in my unit complex in Scottsdale. What did you end up doing?
I’m going through the same situation can you share your recommendations of how to deal with this?
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