Hello,

When making an offer on a commercial property, is it acceptable to offer well below the asking price?

Example: A multi-unit apt property is being offered for $1,000,000. Would it be out of line to offer $800,000?

On an average commercial transaction that you have done, what is the average movement from the asking price?

Thank you...

In short yes. Do your own research or have a local agent help you determine the average cap rate for similar properties in the area. Take the net operating income and divide by the cap rate. That will give you a pretty good estimate of the properties value. Offering 80% of the asking price is not out of line at all. You dont know how eager he is to sell until you throw something at him.

good luck!!

I've seen deals like that fly - but there again it was overpriced to start with.

Depends on how well its priced to start with, and how motivated they are.