What is Re-Trading?
The Short Answer
Re-Trading explained simply
Re-trading is when a buyer tries to change the terms of a deal after an offer has been accepted. This usually means they ask for a lower price or different conditions. It often happens after the buyer finishes their due diligence and finds something new. It can also happen if market conditions change. Re-trading can be frustrating for sellers because it can delay or even kill a deal.
Real-World Example
The Coffee Shop Re-Trade
Imagine a buyer offers \$200,000 for a coffee shop. The seller accepts. During due diligence, the buyer finds out the shop needs a new espresso machine, which costs \$10,000. The buyer then comes back and says they will only pay \$190,000, effectively re-trading the deal to account for the new cost.
Why this matters
Re-trading matters because it can impact your sale price and timeline. It can also create stress and uncertainty. Understanding why it happens helps you prepare and negotiate better. It is important to have a strong deal in place and be ready for potential changes.
Always be prepared for a buyer to try and re-trade. Have all your documents in order and be ready to defend your price. Sometimes, it is better to walk away than accept a bad re-trade.
Always be prepared for a buyer to try and re-trade. Have all your documents in order and be ready to defend your price. Sometimes, it is better to walk away than accept a bad re-trade.
Ready to sell?
List for free.
