QUESTION

A developer wants to buy my commercial property. They already purchased 2 commercial properties next door. What is a standard offer? I was told 3x.

Asked on Feb 11th, 2012 on Real Estate - Georgia
More details to this question:
A developer wants to buy my commercial property. They already purchased 2 commercial properties next door. What is a standard offer? We are a very successful business & our building & location are invaluable to our success. I would be interested if the money was right. The developer says he purchased the other 2 commercial properties next door & needs our property to complete the project for his client. He is looking to start the project in 3 months. Our business will be destroyed if we sell to him so the property is worth much more than just the value of the building. I was told 3x the value. What is the standard offer? What is fair? Selling the building at market value would not benefit us or our business. We never thought about ever selling the property. What is the Rule of negotiation?
Report Abuse

1 ANSWER

Real Estate Law Attorney serving Anniston, AL at Isom Stanko & Senter, LLC
Update Your Profile
There is no "rule" pertaining to making or accepting an offer of purchase.  The developer is not interested in what your business is worth and will probably offer nothing for it -- he will offer only the "fair market value" of the property (or less if he can get by with it).  The Fair Market Value is the value established by the market place:  what a willing buyer will pay and what a willing seller will accept.  A qualified appraiser can estimate the Fair Market Value by analyzing the sales of similar properties in the general area.  His work will not include any valuation for your business.  The idea is that your business can move down the street to another location and continue on.  If your business is somehow unique and cannot be moved to another location, or if the cost of doing so will be prohibitive, then you just don't sell.  It may be that if the developer needs your property badly enough, he will offer more than the property is otherwise worth simply because of the need.  If he does so, it won't be a purchase of the business or a payment to reimburse you for damaging/destroying your business -- it will be an adjusted purchase price simply because that's the only way he could get the property.  If you want to seriously consider the developer's offer, you should confer with a good real estate lawyer in your area for assistance in negotiating the price and making the transfer.  It is risky to enter into such transactions without a lawyer unless you are experienced enough to undertake the effort alone. 
Answered on Feb 15th, 2012 at 6:05 PM

Report Abuse

Ask a Lawyer

Consumers can use this platform to pose legal questions to real lawyers and receive free insights.

Participating legal professionals get the opportunity to speak directly with people who may need their services, as well as enhance their standing in the Lawyers.com community.

0 out of 150 characters