Then You Must Provide Financials!
Sellers To Work With, Or Not…
We, real estate brokers, face some very unrealistic sellers in commercial real estate almost on a daily basis. These sellers want to sell their hotels or other property and they want to sell it at a very premium price. But when you ask them to provide bare minimum financials, they have all the excuses in the world not to provide them.
They want an offer before they can provide any financial… This is very troubling. They either have no clue how it works in the industry or they are just plain ignorant and playing hardball with you.
Based on what number will the buyer make an offer in this case?
Want To Sell Your Hotels for multi-million dollar without financials…
First of all, it’s impossible to convince any credible buyer to even make an offer on a commercial property without any financials provided. But let’s say, you were able to bring an offer because you are in good relations with your buyer.
The offer will have multiple contingencies and the first one is gonna be based on seeing the financials, STR report, for hotels, etc. Hellooo… Back to square one… So you are chasing your tail here. This is not going anywhere as you can see.
That being said, if you bring an offer too low then it’s insulting to the seller. If you bring an offer too high (Which I doubt) then they don’t want to budge when the real value comes in picture with an appraisal. It’s a losing proposition for a real estate broker to be in. Because your credibility is on the line due to a couple of reasons…
- Firstly, you would look ridiculous trying to convince any buyer to make a blind offer.
- Secondly, sellers like this won’t sign an agreement with you, to begin with. Therefore, it’s very easy for them to walk away from any offer you might have in order not to pay you. Or worse, to circumvent you if they know the buyer.
My advice to you, a) Never disclose your buyer in this kind of situation until you have some kind of agreement with those sellers. b) Don’t even waste your time with these sellers. You better walk away before investing too much of your time with those unwilling to work with you.
Contact Us for questions, comments or when you are ready to sell your hotels.