Ours has become a business culture and climate often made up of the lack of economic appreciation for many things and it seems there is a growing unwillingness to recognize the value of expertise, service and product quality and to mistakenly perceive that all things are open to negotiation. Or, worse yet, there is often a perception that all things are of equal value.
With a declining real estate market there is a mistaken notion that the value of commercial expertise is somehow diminished when instead its inherent value is increased due to the complexity of the market.
Often, when a client attempts to negotiate the cost my expertise downward, there is a corresponding decrease in my desire to commit resources, creativity and indeed the labor necessary to accomplish a stated objective. Accomplishing a client’s objectives is difficult in good markets; in bad markets the required disciplne is often excruciating.
Watch the humor but catch the economic drift of this YouTube video produced by Scofield Editorial, Inc. and entitled, The Vendor Client Relationship.
Warren Buffet, considered by some to be the consumate investor, was interviewed on CNBC on June 24, 2009, and indicated that he believes we have not seen the end of the economic decline.
Email Donald Teel for Prescott, Arizona Commercial Property information or, if you prefer, call him, toll free at 877-777-9100.
The notion of buyer’s market or seller’s market is a real phenomenon in any form of real estate investment.
Seldom can it be said that the market is both a ‘buyers’ and a ’seller’ market simultaneously. But this seems the case as we prepare to enter the second half of the 2009 commercial market.
Pinching down on Buyers is the absence of simplified capital lending, something necessary to their investment strategies. Sellers are experiencing what I call “refi shock” as banks tighten their rules for lending qualification in the wake of declining property values.
The conundrum is realized as buyers and sellers are forced to work in a market that favors both. The conundrum is one of uniquely creative transaction partnerships, where neither the buyer nor the seller can pop the cork on a Champaign bottle and light-up a victory cigar.
The Buyer vs. Seller Conundrum
This paradox of market realities or, clash of interests, is actually a moment of investment opportunities where banks can become the third party servants to buyers and sellers. Continue reading “Buyer vs. Seller Conundrum”
Donald Teel is a Senior Associate and Principal Partner with Arizona Commercial, a commercial real estate Brokerage and Property Management Company that services the entire state of Arizona. Read more...
