New York Real Estate Journal

Have you ever encountered a seller in total distress?

February 12, 2013 - Brokerage
Have you ever encountered a seller in total distress? The tell tail signs include lack of activity, deferred maintenance of the premises, and plenty of under-utilized equipment. Seller's emotional, and psychological defense is often in a state of denial. This emotional state, contributes to heavy drinking, family strife, and a hide and seek strategy resulting in a heavier dose of guilt. My best advice is to help the client save face. It's the most effective tool I know when dealing with the conflicts that clients face when dealing with a bankruptcy or debtor in possession situation. When you approach this opportunity with a clear objective to help the client, then you are making a difference in their life and in your community. If this picture hits you right between the eyes, then welcome to reality. As a professional, I believe the best policy should be to protect the client from further self-inflicted guilt and remorse. Clinically, we need to determine its marketable value, counsel the client, in light of the situation and then provide recommendations to make the property saleable. These recommendations may include staging the property, minor clean-up, and liquidation of non-essential equipment, subject to any lien holder interest. Its obvious that shock and denial hamper the clients perceptions, which is why a methodical approach and a strategy needs to be provided incrementally and repeatedly. The client's attorney is the key conduit to all parties involved. The most successful approach I have utilized is to keep the client, his attorney and their bankers informed of your progress. The client directs your communications to his counsel and banker which keeps every one on the same page. This case study approach continues to be an effective manner of conducting business. There are exceptions to every rule, with egos, and personality conflicts arising from the situation but they can be minimized by being direct. Straight forward communications to all parties is greatly appreciated during these challenges. If one of the parties acts like a jerk, be happy your not taking them home for supper. That would be a real insult to you and your family. All kidding aside, you can effectively deal with all parties when you are sincere, honest, and in constant communications. This keeps the situation in check and at the same time provides relief to all parties. For over 30 years I have marketed on behalf of clients, lenders, and third party operators of commercial, industrial real estate throughout the capital district. When you do your job by listing the property at a realistic price point, and effectively marketing the property, you are providing an opportunity for the best possible outcome for all concerned. Paul Bowers is a licensed associate broker at Prudential Blake Commercial, Albany N.Y.