Offering 12% below asking on a Montreal serviced apartment

H

hana.slate

Real estate agent
Established
Seeing that the property has been listed for 110 days made a 12% discount seem less extreme than it did at first. The asking price for this Montreal serviced apartment is C$1,701,000, and it also appears to need updating.

We have only tonight, but I would rather sequence the checks than submit a hurried offer. The first step is to establish what the serviced arrangement actually covers, including any recurring obligations, and then look for completed sales and a credible basis for the repair allowance. After that, I can provide financing proof, explain the offer briefly through condition and value, and offer some flexibility on completion.

The lower figure should not come at the cost of taking on risks I cannot price. Which inspection, financing and appraisal conditions would you keep, and how would you structure the deposit if the valuation falls short?
 
Twelve percent below is not inherently insulting after 110 days. Keep the explanation short: limited completed evidence, condition and expected updating costs. Do not send a critique of every worn surface. Show that you can perform, give a reasonable response deadline and let the price speak.
 
Before choosing the number, what exactly does “serviced” include here? Furniture, ongoing services, management arrangements and recurring charges could materially affect value. Also, do you have even a rough repair estimate? Without that, 12% sounds selected first and justified afterward.
 
I disagree that the 110 days alone supports a deep discount. It could mean the seller is patient rather than motivated. The stronger argument is completed comparables adjusted for condition. If those are unavailable, your offer should preserve more due diligence, not pretend the uncertainty automatically belongs to the seller.
 
Phrase it positively: “Our offer reflects the available sales evidence and the updating we expect to undertake.” Then emphasise financing documentation and completion flexibility. Avoid saying the apartment is “worth only” your number; that invites an emotional argument about value.
 
I would not waive inspection merely to make a low offer look cleaner. Updating and defects are different things. The inspection condition should be meaningful enough to investigate the apartment, while any building or service-related records that apply need separate attention.
 
Financing proof does not eliminate appraisal risk. Decide now whether you could cover a shortfall between the lender’s valuation and the agreed price. If not, keep financing wording that protects you rather than relying on a pre-approval as though it guarantees this particular property.
 
Can the agent give any neutral indication of seller priorities—price, timing or certainty? Your flexible completion date is useful only if it solves their problem. If timing means nothing to them, it will not compensate for much of a price reduction.
 
I would avoid asking for both a large discount and a list of cosmetic repair credits. Price the visible updating into the initial offer. Reserve later discussions for significant issues that were genuinely unknown before inspection.
 
Pay close attention to the deposit terms. A larger deposit may signal seriousness, but it also increases the amount tied up while conditions are unresolved. The release and forfeiture consequences depend on the contract and jurisdiction, so have the exact wording checked rather than treating deposit size as theatre.
 
Also, do not confuse “we must decide tonight” with “the seller must answer immediately.” An unnecessarily sharp expiry can make a 12% reduction feel more hostile. Give enough time for a considered response unless there is a genuine competing-offer situation.
 
Good distinction from lara. A clean offer means readable terms, credible financing and no frivolous conditions; it does not have to mean waiving essential protection. Sellers sometimes care more about whether conditions are precise than whether there are none.
 
One more thought: set three numbers before submitting—the opening price, the highest counter you would accept, and the amount of any appraisal gap you could safely absorb. Otherwise the seller’s counter can pull you above your limit one small concession at a time.
 
For a serviced apartment, I would want clarity on anything that could restrict use or create ongoing obligations. That may not change the offer price, but it could change whether you offer at all. Ask for the relevant arrangements and costs rather than assuming they are standard.
 
Completed comparables are still the missing piece. Ask for the closest sales by size, condition, location and service setup, even if they are not perfect matches. Current listings tell you the competition; they do not tell you what buyers ultimately paid.
 
I still would not build the whole case around 110 days. A stale listing can indicate overpricing, but it can also reflect unusual features or weak marketing. Use the time on market as context, not as the headline justification.
 
A practical structure could be: offered price, financing evidence, flexible completion window, inspection condition, financing/appraisal protection, deposit terms, then a brief note explaining condition and limited completed-sales evidence. No long renovation spreadsheet unless the seller requests detail.
 
There is another strategic risk: an opening 12% below asking leaves room to negotiate, but only if your ceiling is meaningfully above it. If 12% below is already close to your maximum, call it a firm valuation-based offer rather than inviting several rounds.
 
Would you still want this apartment if the seller moved only a few percentage points? That answer matters more than whether strangers consider 12% polite. Work backward from your walk-away price, expected updating and carrying costs, then submit a number you can defend without becoming attached overnight.
 
And if the seller rejects without countering, do not automatically conclude the approach was wrong. It may simply reveal incompatible expectations. The useful response would be to leave the door open briefly rather than bidding against yourself the next morning.
 
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