Is 5% below asking reasonable for this Los Angeles townhouse?

[PracticalSignal]

I’m considering a Los Angeles townhouse listed at $160,000. It has been available for 16 days, needs updating, and the seller has already had one deal collapse, although they do not appear desperate. Asking prices nearby are similar, but I cannot find enough completed comparable sales to establish value confidently.

Would an opening offer of $152,000 be sensible if I include proof of financing and flexibility on the completion date? I want to explain the price without antagonising the seller. I’m also unsure which protections to keep, particularly inspection, financing and appraisal.

 

[SimpleWall]

Five percent below is not inherently aggressive, especially when the completed-sales evidence is unclear and work is needed. Keep the explanation factual: limited closed comparables, condition, and your ability to proceed. Avoid presenting a long list of defects as though you are trying to wear the seller down. I would retain inspection, financing and appraisal protections unless you can comfortably absorb the risks yourself.

 

[xavi_flint]

Do you know why the first deal collapsed? A financing failure tells you little about the townhouse, while an inspection or appraisal problem could affect both your price and contingencies. Your representative may be able to ask without assuming the seller will disclose every detail.

 

[nia_sage]

I’d be careful about treating 16 days as evidence that the price is soft. That is not necessarily long enough to establish weak demand, and nearby asking prices suggest the seller may simply reject $152,000. Make the offer if that is your valuation, but decide beforehand whether you would move upward and where you would stop.

 

[SimpleWall]

Agreed that 16 days alone is not leverage. The collapsed transaction is more relevant, but only if the reason points to condition, valuation or the seller’s preferred timing. Gabriel could strengthen the offer by giving a clear financing letter, a reasonable response deadline and a choice of closing dates, rather than by weakening protections.

 

[direct_map]

Don’t combine a 5% discount with an expectation that every visible update will produce a repair credit later. Price cosmetic work into the initial offer. Then reserve credit requests for material issues discovered during inspection. Otherwise the seller may view the first number as a tactic rather than a genuine valuation.

 

[kai_cole]

The appraisal gap deserves attention here because completed comparables are hard to verify. If the appraisal is below the agreed price, can you contribute extra cash, renegotiate, or walk away under the contract? Do not promise to cover an unlimited gap merely to make $152,000 look cleaner. The financing letter also should not imply funds beyond what you are actually prepared to commit.

 

[CandidPath]

I would ask for the best available closed sales before submitting anything, even if they are imperfect. Compare townhouse size, condition, location within the development and any meaningful differences in ongoing costs. Active listings show current seller expectations; they do not show what buyers and lenders have accepted. If the evidence remains thin, that uncertainty supports keeping the appraisal contingency more than it supports any exact discount.

 

[nia_sage]

There is also a presentation issue. A short note through the agents saying the offer reflects the updating required and limited closed-sale evidence is enough. I would not send a detailed amateur estimate for each item. If energy-related equipment or building components are part of the concern, let the inspection establish their condition rather than assigning speculative replacement costs now.

 

[direct_map]

On the response deadline, make it definite but not artificially tight. The goal is to prevent the offer from sitting indefinitely, not to pressure the seller into a rushed decision. A seller who is not desperate may simply ignore a deadline that feels tactical. Flexibility on completion is useful only after you learn which dates actually matter to them.

 

[kai_cole]

Also read the deposit terms closely. Inspection, financing and appraisal protections are only useful if notices and deadlines are handled correctly. Deposit exposure can change once contingencies are removed, depending on the contract and California practice, so have your agent or a qualified local professional explain exactly when your money becomes vulnerable before you sign.

 

[lens.red]

A practical structure would be: offer $152,000, attach genuine financing proof, keep inspection/financing/appraisal protections, offer reasonable timing flexibility, and set a clear response deadline. Before submission, ask about the failed deal and obtain whatever completed comparables are available. Then decide your maximum price and acceptable appraisal gap privately. That way a counteroffer becomes a financial decision rather than a reaction to seller pressure.