Pricing Commercial Real Estate in Today's Realty Reality

Is it just me, or is there a real sense in the marketplace that buyer's feel that they should be getting blazing hot deals these days? I'm all for trying to get a good deal; after all, isn't that what we get paid to do, negotiate deals that both parties feel are beneficial? But do you get the feeling that some buyer's think that they're doing sellers a favour by 'taking that property off their hands'? I don't know about you, but I think we've got a ways to go before buyers and sellers are on the same wavelength again.

As one of our clients put it, "The point of capitulation hasn't been reached." Well, I don't know about 'capitulation', that sounds like someone has to give up something valuable, and that makes me uncomfortable.

I'm a believer in the win-win scenario after all. If all parties to a transaction don't feel that they got something of value, then I don't feel as though I've done my job well.

Captain Kirk said it best in Star Trek II, The Wrath of Khan, "I don't believe in a no-win scenario."

In talking to my colleagues, clients and customers, I'm getting mixed signals about the market and pricing. Some are extremely busy (as we are right now - buyers seem to be coming out of the woodwork right now!), and others seem to be in the doldrums still. In an effort to gauge how the market is being priced right now, I'm running a little poll to see how listings are being priced.

Please take a moment to vote - the poll is at the top right of the main page of this blog. Assuming I can get a reasonable number of responses, I'll report back with my findings in a future post. Let me know how the market is treating you right now, I'd love to hear someone else's war stories!


Harry Huffman July 20, 2009 at 2:28 PM  

True Doug, It seems that many sellers still believe that it is still 2006 or 2007 and that if you list it at a high price and only average condition the offers will come flooding in. Many buyers have been paying attention to the distressed market in south Forida or California or in some other states and think the market is still going down and that they are entitled to purchase at an unrealistic price and are insulted when their offer is signed back or even refused.

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