Seller’s Bottom-Line Expectation
The minimum acceptable price is the lowest amount the seller is willing to consider for the transaction. This figure is typically kept confidential but is guided by investment recovery, market trends, and negotiation room.
- Based on cost of acquisition and development investments
- Influenced by current demand and urgency to sell
- Usually 10 to 15 percent below the asking price
Factors Affecting Minimum Price
The final threshold is shaped by several key variables that reflect both the seller’s goals and market dynamics.
- Market comparables and recent sale data
- Time on market and buyer activity
- Liquidity needs, tax impact, or reinvestment plans
- Willingness to negotiate based on payment terms and deal speed
Disclosure and Negotiation
Sellers often share the minimum price only during advanced discussions with qualified buyers. It helps protect deal value while enabling flexibility during negotiations.