For fire sales in today's market, what is a general discount range?

For a class A/B office building in the suburbs, how much of a discount from the list price to close a deal in the next 6 to 9 months?
In Selling Property - Asked by Charlie G. - Feb 24, 2009
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Answer(s)

Thomas M.
Appraiser
Brookline, MA

20 to 40%

Feb 25, 2009
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Lee A.
Owner/Investor
Bridgeport, CT

Charlie, the "price" and "discount" makes sense for a non-stabilized property, purchased for cash.
For a stabilized or near-stabilized properties my clients can pay pretty good purchase price if the interest rate is low. This is accomplished with owner-financing.

Mar 1, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

How big of an investment property? I've found the larger the price the larger the necessary discount because the investor pool shrinks with the higher prices.
25% might be fine for a $500,000 property
50% might be required for $5,000,000 property
It all depends. I would recommend speaking with a CCIM in your area that knows the property type.

Aug 3, 2009
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