Offering 13% below asking on a Calgary warehouse listed at C$1,188,000

[MinaGale]

I need to settle my offer terms before the response period starts, and the trade-off is price versus protection. The Calgary warehouse is listed at C$1,188,000, has been available for 58 days and requires updating. I am considering C$1,033,560, which is 13% under asking.

There are nearby listings to reference, but too little completed-sale evidence for me to be confident about value. I can show strong financing support and accommodate the seller on completion. Would you submit the lower figure with a short explanation, or make the appraisal gap the basis for a separate negotiation?

I do not want to remove inspection, financing or appraisal conditions. For example, if the inspection identifies roof work, is it better to request a credit then rather than pricing an assumed repair into the opening offer?

 

[lena.voss]

Make the offer about uncertainty rather than defects: limited completed comparables, the updating required and your need to account for inspection findings. Attach financing evidence and offer the flexible completion date, but avoid a long defence of every dollar. A straightforward offer is less irritating than telling the seller why the warehouse is supposedly worth less.

 

[reviewTheCreek]

Do you know whether it is vacant, occupied by the seller or producing income? That could change both the seller’s motivation and what “flexible completion” is worth to them. I’d also ask whether there have been previous offers or price changes. Fifty-eight days gives you room to negotiate, but it does not reveal why no deal has happened.

 

[small_quill]

I disagree slightly with leading at the exact 13%-below figure if you would be disappointed to lose it. The seller may treat C$1.033m as unserious when their asking comparables appear close, even if those are not completed sales. Decide your maximum first, then leave enough room for one or two meaningful moves rather than starting low with no credible path upward.

 

[jae.holt]

I would not waive inspection on a warehouse needing updates. The scope should be suitable for the building rather than a residential-style inspection alone, with attention to the structure and major systems relevant to the property. Keep financing as well if approval depends on the particular asset.

Repair credits are better tied to documented findings. Asking for a discount now and speculative credits at the same time can look like double counting.

 

[able_echo]

Appraisal is the awkward part. Strong financing evidence shows that you are prepared, but it does not remove the risk that the lender values the warehouse below the agreed price. Be clear about whether you could cover any gap before weakening that condition.

Also have the deposit wording and release circumstances reviewed for the Alberta transaction. A larger deposit may strengthen the offer, but it also increases exposure if the conditions and deadlines are unclear.

 

[MinaGale]

It is currently vacant, so flexibility on completion may not be as valuable as I first assumed. I also do not know of any prior offers. Based on the comments, I’ll keep the opening price but present it briefly, include financing evidence and use a reasonable response deadline rather than trying to force an overnight decision. I’ll retain inspection, financing and appraisal conditions, with repair credits left until there are actual findings.

 

[DevNorth]

That sounds coherent. Before submitting, ask what the seller values besides price—speed, certainty or a particular completion date—even with the building vacant. You could also decide your response to three likely outcomes now: rejection, counteroffer or acceptance without repair concessions. Pre-setting your maximum price and appraisal-gap limit will make the next round less emotional.