We were recently involved in two industrial sales, one in Santa Fe Springs and the other in Buena Park. We represented the Seller of one and the Buyer of the other, so we witnessed the tension from both sides of the table. In one instance we had to assure the Buyer that while the Seller was not being too flexible, we are still getting a ‘good deal’ (supported by market data and trends) and, as important, we are getting the property. In another instance we had to assure the Seller that although we have multiple offers, we really should not push beyond a certain price as we run the risk of chasing these Buyers away. There was not only the tension of the negotiation but our relationship on the line. Either Buyer or Seller could have told us we are wrong, but as they trusted our advice and we got the deal closed. Both were very pleased with the outcome and success they experienced.
In another transaction, where we represented the Buyer, we had to advise them to disapprove of a contingency on the last day to protect their deposit, even though that could cost us the deal altogether. When we encountered a Seller who was not willing to cooperate on a request for additional time the Buyer had to make a decision to waive the financing contingency and risk the Buyer’s deposit or disapprove of the financing contingency and be entitled to the return of the deposit. However, if the Buyer disapproves, the Seller can terminate the deal. The tension was that the Buyer’s lender verbally said they are able to do the deal, but we did not have a formal approval from the lender for a couple more days. We aimed to minimize the tension for our client by clearly laying out the options and outcomes, and we agreed on a strategy. This approach not only helped reduce the tension in the client’s decision, it also reinforced our “client’s objectives first” approach in the eyes of the Buyer.
Tension can be a useful tool, but it can also amplify the decisions we face day to day. As you consider your upcoming or future real estate decision, please contact us today as we work toward creating an environment where tensions are minimized on the road to successfully completed transactions.
Christopher J. Destino, SIOR, a Principal at Lee & Associates, is an engaging, responsive professional who enjoys working closely with his clients and helping them succeed.
Industrial Insight Archives