How do deal with property next door with below market asking price?
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[{"id": "grf2ps4", "text": "You hope for the bidding war.", "replies": [], "depth": 1}, {"id": "grf31k2", "text": "Buy it.  \n \nEdit:  I'm being facetious obviously, but remember that even if you think the market price is $3.2MM, if an identical neighbouring building sells for $2.4MM then $2.4MM is the new market price until another sale proves otherwise.", "replies": [{"id": "grf6aoj", "text": "To OP:\n\nIf you value your asset at that current value and think that the market reflects that valuation then you should purchase that comparable property at the low price. Because if you're right, then its free money. \n\n&amp;#x200B;\n\nOften times in assets valuation, the individual assesses their property worth from the lens of what they think they deserve. Ask any owner what their property is worth. Then ask them if they'd pay right now what its worth to them. Often times, you find individuals are lost in their valuation.", "replies": [{"id": "grfez15", "text": "An influential mentor in my career told me that the time to sell an asset is when it is valued at a price you wouldn\u2019t pay for it.", "replies": [{"id": "grfgczr", "text": "&gt;  sell an asset is when it is valued at a price you wouldn\u2019t pay for it. \n\nNailed it.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "grf5jth", "text": "Put in an offer for $3M contingent on seller taking their listing down and your selling both properties together for at least $6M. Walk away with $250k in extra profit if you can sell them both for $6.5M", "replies": [], "depth": 1}, {"id": "grf8272", "text": "Well, what about conditions and NOI? If you have a better roof and your tenants pay more, that is what matters. If he is underselling, it is his mistake. I agree with many here, either buy it or just wait until is sold.", "replies": [], "depth": 1}, {"id": "grf8p0v", "text": "Perhaps their valuation is more accurate.\n\nTake your listing off the market for the duration of their sale and find out.", "replies": [], "depth": 1}, {"id": "grf9949", "text": "Buy it... duh..", "replies": [], "depth": 1}, {"id": "grfa48f", "text": "Really not enough information to help. What property type are the properties? If multi-tenant, what does the tenant mix look like? Are you sure the property next door isn\u2019t marketed for quick sale or shortened marketing period? There\u2019s a lot of variables that can make the difference. Assuming these aren\u2019t owner-user properties since you mentioned NOI, the strength and stability of the income stream are important and can vary widely even though they\u2019re right next to each other.", "replies": [], "depth": 1}, {"id": "grfc2qr", "text": "Buy it", "replies": [], "depth": 1}, {"id": "grff7s8", "text": "How long have both properties been listed for? What condition are they in? How are YOU determing market value if you claim there aren\u2019t much comps in the area.", "replies": [], "depth": 1}, {"id": "grffrf4", "text": "You sound a little out of touch based on your responses here", "replies": [], "depth": 1}, {"id": "grfnduh", "text": "How did you reach your valuation? Have you gotten an appraisal or BOV? Also, are both properties stabilized?", "replies": [], "depth": 1}, {"id": "grktgky", "text": "What's your cap rate? What's the competing cap rate? If the neighboring property is managed poorly, yours might have a higher cap rate and be a better buy.", "replies": [], "depth": 1}]