Investing in commercial real estate can be a great way to make money and build wealth. But it can also be competitive, with multiple bidders vying for the same property. If you’re looking to win a bidding war, there are several strategies that you can use to increase your chances of success. From researching comparable properties to getting pre-approved for financing, here’s how to win a bidding war for commercial real estate.

Do Your Research

Knowing the local market and researching comparable properties is key when it comes to winning a bidding war. You need to understand what similar properties in the area have sold for to ensure your offer is competitive. Researching the property type, age, location, size, amenities, and condition can help you determine if it’s a good investment and how much to offer.

Get Pre-Approved Financing

Pre-approved financing can give you an advantage when competing for a property. Showing the seller that you have a lender willing to loan you the money for the purchase can help prove that you’re serious about making the purchase.

Offer a Quick Closing

If you’re up against multiple bidders, offering to close quickly can be an advantage. By closing sooner, you may be able to reduce the risk of other buyers walking away or getting cold feet at the last minute.

Make Your Best Offer First

When competing against multiple bidders, it’s best to make your highest and best offer right away. This shows the seller that you’re serious about getting the property and eliminates the need for a lengthy negotiation process.

Be Ready to Negotiate

Despite making your best offer first, you should be prepared to negotiate if necessary. If other buyers are interested in the property, you may need to make a counteroffer or negotiate on price, closing costs, and other factors.

Following these tips can help you win a bidding war for commercial real estate and get the property you want. Remember to do your research, get pre-approved financing, offer a quick closing, make your best offer first, and be ready to negotiate. Doing so can give you an edge when competing against other buyers for the same property. MAI Capital offers financing with fast closings so you can get the commercial properties you want. Contact our team today to learn more.