The seller chose our offer because it appeared more likely to remain executable through closing, even though another buyer offered more. Before submitting our offer, we had already toured the 216-unit multifamily property, identified visible repair and capital-improvement needs, and reflected much of that risk in our underwriting. For a transaction priced above $10 million, the highest initial number is not always the most dependable closing price.
Project overview
We are currently advancing a contract on a 216-unit multifamily apartment property. The seller was initially asking more than $10 million, and several buyers competed for the opportunity.
At least one competing buyer submitted a higher offer. On price alone, we did not have the advantage. The seller nevertheless accepted our offer.
The project has not closed. This article records an active transaction process rather than presenting a completed investment result.
Why a higher offer may not become the final price
A buyer may submit an offer using the seller
3. Professional negotiation is not simply raising or lowering the price
Effective negotiation helps both sides understand how the price was developed and why it has a realistic chance of remaining viable through closing.
Frequently asked questions
Does a commercial real estate seller always accept the highest offer?
No. A seller may also consider financing, earnest money, due-diligence timelines, closing timing, buyer experience and the risk of later renegotiation or failure to close.
Why inspect a property before submitting an offer?
An early visit may reveal visible repair, equipment and operating issues that should be reflected in underwriting. It does not replace the complete inspections and due diligence conducted after contract execution.
Does an accepted offer mean the transaction is successful?
No. An accepted offer or signed contract is only one stage. Due diligence, financing, valuation, insurance and legal review may still affect whether the transaction closes.
About Joyce Tang
Joyce Tang is a Greater Houston real estate agent and investor, co-founder of the North American Real Estate Association, founder of JoyHome and JoyNest, and co-leader of the Dr. Wang Real Estate Team.
She has helped more than 200 families buy or sell homes and has participated in more than 40 renovation projects. Her approach examines not only price, but also location, carrying cost, cash flow, risk and future exit options.
If you are evaluating a multifamily opportunity, you can contact Joyce with the property type, approximate size and your main questions. The conversation is for real estate education and analysis only and does not provide access to, or solicit participation in, any specific offering.
This article describes transaction analysis and negotiation only. It is not an offer to sell or a solicitation to buy any security, and it is not legal, tax or financial advice. The project has not closed, and its terms and outcome may change.
Written by Joyce Tang, serving Greater Houston clients with residential sales and leasing, real estate investment, and commercial real estate needs.