Advisor:

Price:

Unit Count:

Carson Halley

Issues:

This sale prosed numerous challenges. Among them, the property had some deferred maintenance. Although located at a good area, the property is tough to access. In addition, the seller had a very high pricing expectation.

Solution:

SVN – Imbrie Realty was hired to list this property for an out of town owner and took it to market immediately, as we always do, which resulted in eight offers on the property over the lifetime of the listing!

After receiving multiple offers and going into contract multiple times, the seller conceded their expectations on price was too high, as we had mentioned in the beginning of the listing, and agreed to a price reduction. There were 7 offers that were received and 4 that were accepted from multiple brokers outside of SVN as well as within SVN. The challenges we faced were mainly due to the condition of the property. Many of the buyers walked away following the inspection of the property. After a price reduction at the end of the listing
timeline, we finally were able to attract a buyer that was selling a property in California, had a large down payment, and able to more than double their income with this asset, and they lived nearby to boot. Midway through the listing, the seller needed to change management
companies and leaned on SVN to provide a referral. In doing so, the new buyers were so impressed with the new management they agreed to keep them on post-closing and utilize them on other properties as well. Having this relationship not only provided value to the
seller, but to the buyer as well. Being able to walk through how the buyer was able to manage the property and improve rents and condition, the buyer became very comfortable with the asset moving forward, after the seller agreed to repair some of the items found
during the inspection. This resulted in the buyers maintaining their full price offer through closing.

In the end, the buyers were happy to complete the acquisition with good terms and upside in the property, and the sellers finally closed the transaction with terms that they knew were fair (over $300/sf), knowing the competition and market had set the highest price for the
asset, maximizing their profit in the sale of the property. This is a win-win transaction that can only be accomplished through doing business the right way, which seems to be rare in the marketplace.

Lessons:

Knowledge of the market, sales process, and negotiation is mandatory
Engaging the brokerage industry is a must to achieve the highest price for the seller
Knowing how to structure a deal and present any issues found during due diligence is essential
Driving competition is key to getting the highest price as a seller
Excellent communication regarding client goals is a must
A broker who is willing to go above and beyond to help drive a transaction to close can be the key to closing a transaction