Sometimes I just want to smack a buyer upside the head to wake them up. Without looking at the cost of money - a sales price doesn't mean too much.

I have small commercial building where the buyer has looked at it three times. The buyer wants to talk me down $35,000 on the sales price since he has to do $90,000 in upgrades on the place.

He has been heee haying around for a while and said he was even considering this place over a year ago.

I told him thank you but his numbers simply don't work out. The building itself is only $135,000 to start with. There isn't anything cheaper than this place. It is a block building with metal siding and a metal roof. The floor is concrete and five to six inches thick. It could use new windows and a new man door.

I explained to him that given what he said he needed to do with teh place, that last year the monthly payment would have been just over $1,500/mo. I explained that by waiting this extra year that the month payment is now $2,100.

Hs reply was that he will go with new construction. So running those number the new payment will be $2,600/mo.

Running these monthly payments over the course of the 20 year loan, waiting has cost him over $120,000 in added cost, and doing the new construction path will be an extra year and $210,000 in extra cost.

All this so he can brag that he can save $35,000. WHACK - stop dreaming Mr Buyer, you are only drawling over yourself

On my end, its the Seller.

Way to much Baloney going on after our written agreement

was signed, 4- months ago.

Go Ray go.

Here we go again with me not understanding the situation.

He has shown multiple times so he obviously has an interest. He can't deny that. You are going to stick to your original deal no matter what.

My question is why sell the place for 135k when you are getting 1.3k/mo and you own it? Do you have to take care of the building with your current lease? If not I would think those numbers are pretty good.

Ken,

So true.....and in fact he may have seen exactly how much I paid for it and that could be the reason why he trying cheap out on me. I think it was 62-ish

Zero,

Why sell the place? I have another place that I am eyeing up that would be an ideal replacement property on a 1031 exchange. A NNN Mexican restaurant that is located in a place that was previously a Wendy's ten years ago or so. Numbers on that place have a comparable Cap Rate, but the place is for sale at $495,000 ish.

James/Mike,

Thanks for putting it into perspective.

Jim - no question.........just some normal head ponding on the table for me.

Just curious, If the tables were turned, he was the seller and you were the buyer, how would you negotiate to buy the property?

RayRay,

I feel your pain.

Most people cannot make a decision

OR

there is something else holding him back, like maybe no money?

Keep moving forward. He MIGHT show up when he's ready.

If he has been considering your place for a year, he doesn't need it. If he needed a building, he would have bought one. If he didn't like the price on yours, he would have found something else and if there wasn't anything else, he would have paid what it cost to buy yours.

Lots of good discussion. To play devils advocate... what if the forecasted CRE gets as bad as some are saying? Perhaps the buyer is just thinking of waiting until the deals show up?

Hopefully your tenant(s) stay and you'll still have the cash flow even if the building comps drop significantly.

This tactic only works when seller is distressed. I am not distressed; I showed you the place 3 times and reject your verbal and written offers. I am done returning the investor's phone calls, text, and emails. Your numbers and my numbers are on the table and too far apart.

I make offers and let it simmer.

Casually and very friendly send reminders to sellers or Seller's agents my offer is a good long term offer that will not change with lending standards or interest rates. I always play the long game. Always send congratulations to sellers when it sells.

This tactic only works when seller is distressed. I am not distressed; I showed you the place 3 times and reject your verbal and written offers. I am done returning the investor's phone calls, text, and emails. Your numbers and my numbers are on the table and too far apart.

I make offers and let it simmer.

Casually and very friendly send reminders to sellers or Seller's agents my offer is a good long term offer that will not change with lending standards or interest rates. I always play the long game. Always send congratulations to sellers when it sells.

I appreciate the various inputs. I sent them a text asking them for a list of there comps, the CMA or the appraisal that they are using to make up their mind.