Updated: Sep 1, 2019
That's the #1 comment from a buyer that justifies why you should market your commercial real estate investment to the open market when the time comes. Buyers enjoy not competing for their next acquisition. Regardless if you use a broker or not, expose your property to the public so you truly know you got the best possible offer.
Unsolicited offers can be strong and very tempting but how do you know that's the best offer available? Accepting an offer based on sale comps helps an owner confirm they aren't getting swindled but that leaves the question of what did they miss out on.
We offer valuations for our clients frequently free of charge and with no commitment to sell or list. We accept that owners will use the information we provide and not use us to broker their transactions. That's a fact of life in our industry and we're willing to take that risk. We want our clients to be willing clients and not just compelled to use our services because of some small print in a proposal you might have missed. We treat our clients with respect and want the relationship to be a good fit. Our clients use our services because we're the best at what we do.
The next time you sit down to look at sale comparable data, even if that's not with us, discuss off-market/pocket listing vs market sale prices to see the real market demand. The data will speak for itself that listing on the market trends higher prices.
As a buyer, it can be stressful to have to submit competing offers for a property. A buyer might miss out on a deal unless they are willing to pay more. Alternatively for a seller, it's great to be in a position to choose which offer to take and have buyers compete for your property. If you're open to accept an unsolicited offer, why not position yourself from a point of strength at the negotiation table and have a 2nd, 3rd or even 4th offer in hand. Your broker might hear more complaints from buyers prior to accepting offers but considerably less after going under contract. That's the power of negotiating from a position of strength.
If you have any concerns or have had past issues with using exclusive listing agreements, check out our article on exclusive listing agreements.
Jake Ammon is a Vice President with Addison Commercial Real Estate in Jacksonville, FL. He specializes in commercial investment properties. Contact him at firstname.lastname@example.org or call Jake at 1-904-834-9809.