Irrational pricing

[Amy A.]

I have been looking for a strip mall/ shopping center in my area and am not finding any below $3M that are priced based on cap rates or any obvious rational calculation. Also, at their asking prices, they would not have close to the lenders' required DSCR of 1.25 at 80% ltv. Who do they think will purchase these and why are commercial agents taking these listings? I've made two offers and even showed them my calculations (thank you Frank Gallinelli for your book!). Sellers were insulted. Also, it seems the only ones for sale have high vacancy but are pricing as if fully occupied.

As a residential real estate agent I often encounter irrational sellers (which is why I hate it and am going to start turning away clients), but didn't think I'd see it as much in commercial! Am I approaching this the wrong way? I have been looking on Loopnet ( with the free membership - Is it worth the extra $$ to upgrade?) New England Property Exchange (they also have some I can't access) and the MLS. I'm looking to purchase for around $1M, unless I can get better than 80% LTV. Since I'm a licensed broker, I want to represent myself as a buyer and use the commission for necessary upgrades. Thanks!