The commercial real estate business in Texas these days is reportedly robust and active. In such an environment, several inquiries and offers may come in on any particular commercial real estate property that is on the market. With that volume of activity, the seller often needs to determine the quality of the supposed buyer that is encountered.
Having multiple prospects and offers implies a certain “noise” in the process where some prospects will be identified as serious and others will be seen as seriously unmotivated. Experts recommend that the seller will do well to observe buyer behavior for certain telltale signs. A prospect who slowly responds to informational requests is likely not too greatly motivated. The same goes for the response time to counter proposals.
A prospect who is late to a showing is not off to the right start, and may be slow in all matters involved throughout the transaction. The purpose that the buyer presents for being interested in the building may also give a strong clue who to prefer. The prospect that is an established business with demonstrated needs for growth in the precise location may be favored as a solid possibility.
However, the prospect that is unrealistically trying to expand its capacity way beyond its current capabilities may be jumping the gun without prequalified financing. A prospect that shows that it is working on the basis of prepared research and relevant facts is to be trusted over one that comes in with no clue of the nature of the specific property. A buyer that has a great practical need for a feature boasted by the property is also generally a good prospect.
In Texas, when a seller uses the foregoing guidelines to gage a commercial real estate transaction, success is likely to come more often and more consistently. Whenever legal questions arise in the process of showing or negotiating a property, the seller or buyer can remain fully engaged in the process by being able to quickly consult with its commercial real estate attorney for answers. Observing that type of assistance is also a good way to know that the other party is fully engaged in the process.
Source: ocregister.com, “Allen Buchanan: Is your commercial real estate buyer for real?” Allen Buchanan, Dec. 9, 2017