The commercial real estate market is more competitive than ever. How do you write a compelling commercial real estate offer on a potential purchase?
Ask good questions!
A seller will respond better to an offer that looks familiar. Through a quick call with the listing broker, can put together a compelling offer!
Top questions to ask the listing agent before writing a commercial real estate offer:
- How do you like the offer written up?
- How much earnest money does the seller want to see?
- How long of a diligence period does the seller prefer?
- What price does the seller want?
- Where do you think it will trade?
- Did you sell the property to the seller? If yes, how did the seller structure their offer when they bought the property?
- Other than price, what is the most important thing to the seller in the offer?
Pro Tip 1: Don’t submit the offer or letter of intent too soon. Follow up with the broker as the offer deadline approaches to ask if the seller is getting offers for the number they want. Maybe the listing broker will tell you the number that it will take to win the deal.
Pro Tip 2: Give the broker confidence that you are the one who will buy the deal. Tell the broker you want the deal. Remove all financing contingencies (assuming you’re confident that you can close).
Pro Tip 3: If you have relationships with other brokers in the market, ask they about the deal of interest. Cross check information. Determine the broker’s reputation for providing accurate information in their offering materials.
Pro Tip 4: Grant Cardone quoted, “Be easy in case you need to get hard.” If reasonable and equitable, give the seller what they want in your first offer. Be easy to work with to build good rapport with the broker. In the case that your diligence period unveils skeletons in the closet, you’ll have leverage to make changes to the offer. If the price needs to come down, don’t ask for a lower price. Ask for a seller credit and include corresponding rationale for the credit.