A buyer calls with an offer for your building, even though you have not put it on the market. The price sounds attractive, and the buyer says the transaction will be simple. How do you know whether it is worth pursuing?
An unsolicited offer can be a legitimate opportunity. It is also one proposal from one buyer. Before accepting it, understand what is being offered, what the buyer still needs to verify, and what alternatives may be available.
Separate the headline price from the actual proposal
A high number is only part of the comparison. Review the proposed deposit, inspection period, financing conditions, closing timeline, and any approvals the buyer needs. Ask what could allow the buyer to cancel or seek a price reduction.
Two offers with the same price can involve very different levels of uncertainty. A lower proposal with stronger terms may deserve consideration, but neither speed nor a claim of an all-cash purchase should replace a careful review.
Understand who is making the offer
Ask which person or entity would sign the contract, how the purchase would be funded, and what experience the buyer has completing similar transactions. Clarify whether the buyer intends to own the property or may seek to assign the contract, subject to the terms negotiated.
Supporting information matters more than an assurance that someone can close. Your broker can help assess the commercial proposal, while your attorney addresses the contract and its protections.
Compare the offer with the property’s actual position
Look at the building’s income, expenses, leases, condition, and relevant sales. A comparison is most useful when the properties and circumstances are similar. An offer for a vacant building cannot be evaluated in exactly the same way as an offer for a fully leased investment.
Also consider whether the buyer sees a particular advantage, such as occupying the space or owning an adjacent property. That interest may be relevant to the negotiation, but it does not establish what every buyer would pay.
Create a basis for making a decision
A structured marketing and bidding process can test interest from other qualified buyers. Depending on the owner’s goals, that may involve broad exposure or a targeted approach with controlled information sharing. More exposure does not guarantee a higher price, but credible alternatives give the owner a better basis for evaluating an offer.
The objective is to compare achievable proposals and their terms. North Village Realty manages buyer outreach, evaluates responses, and helps owners assess pricing alongside financing, contingencies, and closing risk.
Before you respond
If you own a commercial property on Long Island’s South Shore and have received an unsolicited offer, speak with Tom Bigansky before committing to a price, exclusivity period, or other terms. We can review the proposal, explain how it compares with the property’s market position, and discuss whether a competitive process makes sense for you.
Related reading: What determines your building’s value? and Why competition matters when a tenant wants to buy.