Finding the best Buyer
Finding the best buyer:
For offmarket transactions it is paramount that we target and find the best buyer.
But the problem with offmarket transactions is the target customers are not even scanning the market actively. It is important for the seller to understand who the target customers are. These are HNIs, hedge funds, portfolio investors and so on.
In most cases these customers who are capable of buying such high value properties are just waiting for the offers from their contacts or institutional procurement agencies.
The discrete nature of such transactions is another unique feature of offmarket deals. The main reason for this discreteness is to avoid public information broadcast. If the property in question belongs to an established business, then the news of the sell might harm the business prospects at other locations. A good example in this case is a well-known luxury hotel chain trying to sell one of their properties at a prime location in one of the German metropoles. If this becomes public information then the image of the company will be harmed and the market reputation of the organization will deteriorate. Because this inevitably generates some ill-founded rumors about the financial health and future prospects of that Organization.
Now the issue with this discreteness hinders the information propagation which in turn restricts the search for a buyer to a closed group.
This also harms the possibility to have a better negotiation position to find a higher price.
How can crossmarket help you?
Time:
If you sell on the crossmarket platform you are able to give your partner the time he needs to analyze the offer. To figure out if it fits his needs. Additionally such institutional buying processes include many steps involving many third parties and intra organizational departments. The process often includes multilayer negotiations, analysis of the property, approval steps and so on.
Speed of execution:
Once the expose is published on crossmarket this will get really fast a lot of matches from potential buyers.
After that the real challenge starts because some of these potential buyers might shy away because their negotiations with their banks did not work out.
That’s why all our partners are prequalified with regards to the legitimacy of their business, an high level assessment of their cash position, availability & validity of legal documents related to the property and so on.
If you as a seller use crossmarket systems you are more flexible by trading your offer with potential partners, without the worry that the deal might fall through the crack.
Higher Price:
Offmarket buyers are ready to pay on average 5 – 10% higher because they know if the property goes on market there will be higher competition and the chance to get a property will be lower. This means due to increased demand the price will possibly go up anyways.
Price adjustments:
Once you post your property details at crossmarket our AI engine will match it with all available and suitable matches. However, your identity is still not disclosed. Hence given what kind of responses you are getting you can either higher or lower the price for the property.
