If you believe someone would pay $480K, I suggest a fair offer would be $480K * 0.94 = $451.2K to reflect 6% selling costs (which is probably less than you would actually have).Good luck

Since then, fewer properties have traded, reflecting the trends observed in the national retail market.Here are several graphs illustrating the current commercial retail market in Los Angeles county:Access the full Los Angeles county commercial retail market report here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1170820/Los_Angeles_-_CA-Retail-Capital_Market-2023-10-02_a_compressed.pdf Data includes: Sale price per unit distribution, cap rate distribution, cumulative sales volume by year, months to sale, recent significant sales, vacancy rates, market rent per square foot, construction deliveries/demolitions, economy, job growth. population growth, and Los Angeles county sub-market activity.

You would still want to do a security deposit reconciliation and send him the statements that reflect where his money went and how much he is getting back.

But just have a thick skin as some FSBO owners believe they own the American version of Buckingham Palace, which is reflected in their asking price.  

+1 to what @Mike Reynolds is suggesting - project management needs to reflect performance-based structure in contracts

You have the option to drop them as your name and reputation is on the line if you the PM are managing below your standards because that is what your owner wants it is going to come back and reflect on you.  

We want to tie up the deal and show them that we're willing to do it at a 7.5% cap rate on the correct numbers, but we can't get the correct numbers until we're in contract and we don't want to retrade If the numbers were misstated (that never goes well in our experience).Has anyone ever written an LOI that says something like this:Buyer and seller agree that the purchase price is  calculated by applying a 7.5% cap rate on actual annual income and and expenses and any decrease in NOI actuals from the OM will be reflected in an adjusted offer price.Any ideas?

My primary focus is on gaining valuable experience and building lasting relationships in the industry, and I believe this arrangement reflects that.If you have any leads, suggestions, or advice to offer, I'd be incredibly grateful.

I have since revised those numbers to be more realistic and conservative and to reflect that this deal is now a BRRRR. 

I want the quality of my decisions to reflect my income.   3.