Entering into negotiations with a multifamily property seller can be a delicate and complex process. Making a wrong move or saying the wrong thing can jeopardize your chances of securing a deal. To ensure smooth negotiations and build a positive rapport with the seller, here are 13 things you should never say or do when dealing with a multifamily seller:

1. Contacting Seller’s Staff or Tenants Without Permission

Respect boundaries and always seek the seller’s permission before contacting their staff or tenants. Unauthorized communication can disrupt the seller’s operations and create unnecessary tension.

2. Criticizing Any Aspect of the Property

Avoid criticizing any part of the property, record-keeping practices, or management style. Negative comments can alienate the seller and make negotiations difficult.

3. Dismissing the Seller’s Asking Price

Refrain from telling the seller or their listing broker that their asking price is unrealistic. Such statements can be seen as disrespectful and hinder productive discussions.

4. Sending Non-Decision Makers for Property Tours

For the initial property tour, ensure that key decision-makers are present. Sending non-decision makers may lead the seller to question your commitment and seriousness.

5. Submitting Unreasonably Low Offers

While negotiation is expected, avoid submitting low-ball offers that are significantly below the property’s market value. Such offers can offend the seller and discourage further negotiations.

6. Announcing Equity Raising Challenges

Avoid announcing that you need time to secure equity from investors. This may give the impression that you are not financially prepared for the transaction.

7. Mentioning Financing Difficulties

Refrain from discussing potential financing challenges or uncertainties. Sellers prefer buyers who can provide a clear path to closing the deal.

8. Describing the Deal as Unconventional

Avoid characterizing the deal as atypical or non-standard. Sellers often prefer straightforward and uncomplicated transactions.

9. Revealing Busyness on Other Deals

While it’s common to work on multiple deals, refrain from emphasizing how busy you are with other transactions. Focus on the current deal to demonstrate commitment.

10. Expressing Interest in Distressed Deals

Steer clear of announcing that you are primarily interested in distressed properties at deeply discounted prices. Sellers may perceive this as an attempt to take advantage of their situation.

11. Promising to Outbid Competitors

Don’t make promises to outbid other potential buyers. Instead, focus on presenting a competitive offer based on the property’s value.

12. Requesting Unusual Property Tour Times

Avoid requesting property tours at inconvenient or unusual times due to unrelated day jobs. Such requests can create scheduling conflicts and hinder the seller’s cooperation.

13. Highlighting Attorney Difficulties

Refrain from mentioning that your attorney is challenging to work with. Instead, aim to handle any legal issues professionally and efficiently without involving the seller unnecessarily.

In conclusion, successful negotiations with multifamily property sellers require a respectful and professional approach. By avoiding these common pitfalls and maintaining a positive and collaborative attitude, you can enhance your chances of securing a mutually beneficial deal. Remember that open and transparent communication is key to building trust and achieving a successful transaction in the multifamily real estate market.