When selling a self-storage facility, the selection of the right offer and buyer is critical. Sellers do not want to waste time in a deal that collapses weeks or months later due to easily avoidable due diligence issues that buyers should have determined on the front end. While a buyer’s initial enthusiasm and speed in submitting an offer might seem appealing, a rushed, high-priced bid isn’t always the most secure option. Experienced brokers and sellers prioritize thoughtful, well-researched offers, even if they take a little longer to materialize.
An offer submitted within hours of a listing, without any prior conversation with the broker to understand the nuances of the deal or its story, often signals a buyer aiming to quickly tie up the property and address the details later. What truly differentiates an offer in a broker’s eyes is clear evidence that the buyer has conducted thorough market research. This includes demonstrating an understanding of the competitive landscape, such as market saturation, current occupancy rates, and prevailing rental rates. Knowing that a buyer has proactively contacted other facilities in the market to gauge these factors before making an offer significantly strengthens their position.
Sophisticated buyers communicate a broader understanding of the market beyond just storage. This includes awareness of population trends, new residential developments, and significant business expansions within the area. Many experienced buyers will also conduct a tax analysis or consult with the county assessor to understand standard property tax reassessment practices following a sale. Completing this level of in-depth analysis before submitting an offer substantially minimizes the potential for unexpected hurdles down the line.
To demonstrate serious intent beyond preliminary market research, a buyer should present a well-crafted Letter of Intent (LOI) or Purchase Agreement with their offer. A polished and comprehensive initial document, versus a weak or missing template, showcases organization and professionalism, offering a preview of a smooth due diligence process. Highlighting relevant experience, including a proven acquisition history, verifiable references, and established lender relationships, significantly builds trust and confidence with the seller and broker.
These are just some of the indicators that an offer has been carefully considered and provides confidence in a smooth contract period. Ultimately, the highest-priced offer isn’t always the best choice. A high degree of certainty of closing is often equally, if not more, important for a successful transaction.
To learn more or discuss your property value, reach out to the Storage Exchange team today!
Contact:
Taylor Cahn
VP of Investment Sales
P: (720) 460-8483
E: taylor@storageexchange.com
About Storage Exchange
Storage Exchange is a national real estate firm specializing in the acquisition, disposition, and advisory services for unique and alternative asset classes. With a focus on understanding the operational nuances that maximize value, Storage Exchange provides tailored solutions for clients across a range of specialized assets.
For more information or to connect with the team, visit storageexchange.com.
Source: Storage Exchange
