Offering 10% below asking on a Cape Town serviced apartment

B

BoldGlass

Property investor
I have checked nearby listings and the likely cost of updating the apartment, but I still cannot tell how motivated the seller is or what comparable properties have actually sold for.

This is a two-bedroom serviced apartment in Cape Town, advertised at ZAR 5,551,000 for 27 days. I am considering an opening offer 10% under the advertised figure. I could support it with financing evidence and accommodate the seller's preferred completion date, rather than sending a long critique of the property.

The part I do not want to compromise on is protection if the inspection finds more than cosmetic work or the lender's valuation is low. How would you set the response period and deposit terms so the proposal is credible without exposing the deposit unnecessarily? It would also help to know whether earlier offers or the seller's timetable should affect the opening number.
 
Ten percent below is about ZAR 4,995,900, which is firm but not insulting if you keep the explanation factual. I would attach financing proof, mention the updating required and say the price reflects the limited completed-sale evidence—not make a long list criticising the apartment. Give a reasonable response deadline and offer flexibility on completion. Keep inspection and finance conditions; a “clean” offer does not have to mean taking unlimited risk.
 
Before choosing the number, do you know anything about the seller’s motivation or whether there have been earlier offers? Also, does “needs updating” mean cosmetic work, or have you noticed issues that could affect the inspection or valuation? Those answers would influence whether I asked for a lower price now or left room to negotiate repair credits later.
 
I’m less convinced that 27 days supports a full 10% reduction. That is not necessarily long enough to show the seller is under pressure, especially when comparable asking prices are close. Starting just under ZAR 5 million may anchor the discussion, but it could also get a quick rejection if no completed comparables support it.

I would not combine a low opening offer with broad repair-credit demands. Reserve any later request for material inspection findings, and decide in advance how much appraisal gap—if any—you can cover without exposing the deposit.
 
A practical structure would be: exact price, financing proof, preferred but flexible completion window, inspection and finance conditions, deposit terms, and a clear expiry time. Add two or three short reasons for the price rather than a defensive essay. Before signing, get the available completed comparables and clarify all serviced-apartment costs and obligations. If the seller counters, compare the extra price with the updating budget instead of negotiating only around the asking figure.
 
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