So you found the right commercial property to invest in.
You did your due diligence and everything looked great. After consulting with the valuer and agent, you crunched the numbers and came up with an offer.
…And then it got rejected.
That’s what I’d like to talk about in this post.
This is going to happen quite a few times in your investment career. Vendors will change their minds and demand something else, or someone may come in with a better offer.
Whatever you do, don’t despair. Try the following instead:
- Talk to the Agent
I get that it can feel awful to have your offer rejected. Many investors take it personally. After all, they went out of their way to create an offer and got their hopes up.
It’s all too easy to get discouraged and move on to something else.
But there’s no reason to give up right now.
See if you can talk to your agent and show them a breakdown of your offer. Tell them how you arrived at it and ask if they have any suggestions.
If they know the seller, they may have some feedback and suggestions on how you can proceed from here on out. You can find out which aspects of your offer need tweaking to make it more appealing.
- Redo the Numbers
Once you’ve discussed the offer with your agent and solicited their feedback, it’s time to apply what you learned.
The best way to start is by revisiting your numbers and seeing if you can change them. Ideally, you should have left some wiggle room the first time around.
Now that it’s gotten rejected, use that flexibility to see if you can come up with a better number.
This is a good time to consider if the target property has any upsides that make it worth improving the offer. Maybe there’s potential to increase the net rent over time.
Or maybe there’s something else that makes the property desirable enough for you to go beyond your initial offer.
If there is, it’s time to determine how much to sweeten the deal. Just remember to stay within your budget as much as possible when you do this.
- Create a Win-Win Situation
If the seller rejected your offer, they did so because they thought they’d be able to get more for the property. Naturally, the best way to counter this is to think about the seller’s needs and how you can meet them.
In some cases, it may not have anything to do with the price. Every deal has a number of features you should consider.
For example, the seller may agree to a lower price if you’re able to put down a very high deposit. They might be desperate for cash and want to get out of the property as soon as possible.
In this situation, you can get your price if you meet the seller’s needs. Everybody wins in the end.
These are just a few of the ways you can turn defeat into victory. Whenever your offer gets rejected, make sure to keep communication open.
This will allow you to come up with something else to make a deal that benefits both sides.
This may mean putting the property on the backburner for now. Revisit it after some time and keep your options open.
There are other tactics that can help you turn a rejected offer around.
To learn more, you only have to sign up for my webinar.