As a sell-side advisor to owners of long-term care communities, we often hear how buyers have approached our clients with off-market offers. Without running a formal process, we would exercise caution when considering an off-market offer due to several areas of risk.
Are You Receiving Top Dollar for Your Communities?
While off-market offers may seem like the most convenient option, there is no way to know how much money is being left on the table without running a process. Many owners may believe they are saving money by avoiding a broker fee, when in reality the opposite is happening.
Buyers tend to be opportunistic and know exactly what they are doing when they reach out with an off-market offer. They use this as an opportunity to undervalue the property, capitalize on the seller's lack of market knowledge, and bypass the competition to secure more favorable terms. This is why a broker's opinion of value (BOV) is essential to maximizing your returns. A BOV provides sellers with a comprehensive understanding of their property's worth, enabling them to make informed decisions and negotiate from a position of power.
Are You Protected from a Re-Trade?
One of the largest risks associated with off-market deals is the potential for a re-trade. Without the representation and guidance of a broker, seller's may unknowingly leave themselves vulnerable to last minute re-negotiations. Sellers, who choose to represent themselves, lack the leverage needed to fend off the buyer's attempts at unfairly altering the terms of the agreement.
Evans Senior Investments assures that our clients maximize their value in every transaction, using our process to safeguard you from any price changes before a transaction is closed. The competitive environment created through the process provides seller's the piece of mind that their buildings are being valued fairly and accurately.
Are You Concerned About Confidentiality?
Our goal is to maximize our clients' value as quickly and confidentially as possible. We do not mass-market and do not do business with buyers that breach confidentiality. Our targeted approach utilizes our database of buyers across the country who we know are interested in your community and willing to pay top dollar.
By engaging ESI, sellers can access expert guidance, market insights, and a strategic approach that ultimately aims to achieve the highest possible sales price for their long-term care communities.
In a recent transaction, we were able to increase the value of a property by 38%, adding $9,500,00 to the initial off-market offer. The amount of potential value added by ESI will always exceed a broker fee.
On average, our clients see a 20% increase in value from their
original off-market offer to ESI's closing price.
Whether you're prepared to sell currently or not, regularly staying up to date on your community's value is beneficial. Reach out to us today to receive a complimentary valuation.