How to negotiate price with seller?

[wonderoffice]

My family runs a Chinese restaurant in Penang, Malaysia since my grandpa. The business has over 60 years of history in providing traditional Chinese cuisine in local patrons.

Following is a write-up in a blog by a food lover, Cariso
cariso-food.blogspot.com/search?q=see+kong+ooi

Due to high competitiveness in F&B industry in the recent years, we have to upgrade both the service and interior atmosphere to be able to stay in business. However, the property we are currently operating is only on 2-years lease. With such short lease, we really cannot afford to spend any seriousmoney for the renovation.

Hence, I am looking into buying a next door property for relocation. Since our business is in this area since the 1940s, we have a regular customer base. I really want to keep it here.

I went to see the next door owner this morning, but he wasn't in. I left my contact with his P.A. and waited for his callback. I also did ask miss P.A.the estimated asking price ,but sheask me to offer instead. I have no idea how much should I offer. The serrounding area is valued at $180-185 per square foot.

What shall I do next?

[Codythebest]

Offer $140 and see what happens...;)

[wonderoffice]

Offer $140 and see what happens...;)

Cody, thanks I will try this.

[Greg]

Yea, always start low and slowly work your way up. Be prepared to pay top dollar because they know you really want that location. Or try to find something in the neighborhood. The people will find you if you have been around that long.

[IggysListing]

What you should offer a seller is a function of perceived market value
and supply and demand. How much do you want or need the property
and how much competition you have.
It is not uncommon in Charlotte, NC during this "buyer's market" to
offer more than asking price. I was involved in one of those transactions
a few months ago.
Each transaction stands on it's own merits and should be evaluated as such.

[gsawiris]

doea this apply only to chinese restaurants?

[Codythebest]

thats not enough

Not enough??...OK...try $130 then...I mean...You get the idea..

[wonderoffice]

Thanks for the advices!

I went to a meeting with the owner yesterday. However, they said they are trying to do some development project onthat piece of land and do not intend to sell it for short term profit.

I asked them what kind of price will move him into sell the land, but they were reluctant to qoute me a price.

Does this mean that they really do not interested in selling it?

Actually the area is not very good in term of location, I will say it's a bit run down. I wanted to buy it just for sentimental value. (You may say I am stupid...)

[Codythebest]

Yes, feelings and business at the same time is not a good thing...

[panamamalcolm]

Hey Wonderoffice,
I can fully understand you wanting to buy for sentimental reasons, the sellers know you want the property so try not to sound too desperate or else they will string you out for maybe an unreasonable price...good luck!!

[zonecancun]

make the lowest offer possible. Do no negotiate by yourself, he knows now you need the property, thats not good for you. Make a written offer, valid 48 hrs. NExt time, do not show up

saludos and good luck

[zonecancun]

I always say" the most expensive property is your neighbor's"

[panamamalcolm]

Hello,
Yes, remember you need to consider the cost of infrastructure for the new place nextdoor. Remember to balance this with the cost of the property which you should really negotiate on as the owners know you really want it. Security should also play a big part as the area you say is substandard. Good luck!!

[EquityManager]

Offer the least possible and try to get the best deal. I think that was just common sense.

[wonderoffice]

Hello,
Yes, remember you need to consider the cost of infrastructure for the new place nextdoor. Remember to balance this with the cost of the property which you should really negotiate on as the owners know you really want it. Security should also play a big part as the area you say is substandard. Good luck!!

I went to the place the other day to view it in details. It appeared that the Timber Floor aand Joist is seriously dmaged by termites. The roof is leaking heavily. I brought a contractor to qoute me on repairing these defects, and the cost is outrageous. Maybe I should just look for somewhere else. Sometimes sentimental value is not worth us risky our capital for business.

Thanks for your reminder.

Peter