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A successful investment sales campaign requires a strategy, but Bob Knakal argues that the strategy should never become a rigid script. Predetermining the number of bidding rounds, deadlines and negotiation stages before the market responds can prevent a broker from adapting to the opportunity in front of them.
The objective is not to follow a predetermined process. It is to maximize the seller’s proceeds while optimizing the probability that the transaction actually closes.
A marketing proposal may outline four weeks of exposure, a bid deadline, multiple bidding rounds and contract negotiations. But every stage of the process produces new information. The broker should use that information to determine the next move rather than blindly following the original plan.
Calling a bid deadline too early can limit exposure, reduce participation and weaken competitive tension. A deadline should be established only after the broker has generated sufficient buyer engagement and credible competition. The goal is to make the market chase the property rather than have the seller chase the market.
If a property generates 20 offers above $40 million, the competitive field becomes a valuable asset. Multiple rounds, contract markups or negotiations with several bidders may be appropriate if they encourage buyers to continue improving their offers.
Aggressive seller representation depends on buyers believing they have a legitimate opportunity to win. If sophisticated buyers believe the process is unfair or predetermined, they will eventually stop participating. Transparency and consistent treatment therefore help create the competition necessary to maximize value.
The strongest offer is not necessarily the highest offer. Deposit size, financing contingencies, diligence requirements, closing timeline, contract terms, certainty of execution and the buyer’s history of closing transactions all affect the quality of an offer.
If one well-capitalized buyer offers $50 million while the remaining bids cluster around $44 million to $45 million, automatically launching another bidding round could create unnecessary risk. The best strategy may be to negotiate improvements with the leading buyer and move quickly toward a signed contract.
A strong broker continuously diagnoses the competitive environment. Sometimes the right move is another round. Sometimes it is narrowing the field, negotiating with two buyers simultaneously, sending contracts to several bidders or simply securing the best available buyer.
The sales process exists to advance the seller’s interests, not to make the broker’s job easier. A predictable process can actually benefit buyers if they know exactly when additional opportunities to improve their bids will arise.
When buyers understand that the seller could make a decision at any point, every interaction carries greater consequence. This creates urgency and encourages buyers to put forward their strongest combination of price and terms.
The broker’s role is therefore part strategist, part market diagnostician. The process should begin with a clear plan, but that plan must evolve as the market reveals itself.
“The best process is not the one you can predict before you begin. It is the one you intelligently design as the market reveals itself.”
Because the market may produce results that make the original plan unnecessary or counterproductive. The bidding strategy should respond to the quality and distribution of offers.
A deadline should be called once there is sufficient market exposure, buyer engagement and credible competition to make the deadline a source of leverage rather than a risk.
No. Financing, deposits, contingencies, diligence requirements, contract terms and closing certainty can make a lower offer more attractive to a seller.
Buyers are more likely to remain engaged and improve their offers when they believe they are being treated consistently and have a legitimate chance to win.
A successful seller’s broker should have a strategy, but never a script. The best process is created dynamically by combining market feedback, buyer behavior and professional judgment.
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