Offering 3% below asking on a Riyadh studio after 63 days — sensible or too aggressive?

O

openTheKite

Real estate agent
Established
SAR 727,500 is the number I am considering for a Riyadh studio listed at SAR 750,000. The 3% reduction seems modest, but I am not convinced that 63 days on the market or visible updating alone explains what the property is worth, especially without enough completed sales.

Rather than rush to justify every detail, should I first ask what completion timing matters to the seller and then present financing proof with a clear response deadline? Any approval would still depend on the property and its valuation, so I want the offer to preserve inspection, financing and appraisal protection. I would rather receive a counter than win the bid with an unmanageable valuation gap.
 
SAR 727,500 is not an aggressive opening in percentage terms. Keep the explanation short: condition, uncertainty around completed comparables, and your ability to proceed. Financing proof and flexibility may matter more than a long defence of every riyal. I would give the offer a clear response deadline, but not such a short one that it feels like pressure.
 
That was my instinct too. I don’t know the seller’s motivation, so I was worried that mentioning the 63 days might sound like I’m telling them the property is stale. I can provide financing proof, although approval will still depend on the property and valuation. The updating is mostly visible rather than something I’ve had formally assessed.
 
Then don’t assign a detailed repair value yet. What updating does it need, and are there any building-level costs or condition concerns? A seller can dismiss a round discount as bargaining, whereas specific visible items give the offer some basis. Also ask the agent whether there have been earlier offers and what matters to the seller besides price, without expecting a full answer.
 
I’d be careful about treating 63 days as leverage. It might indicate weak demand, but it could equally mean the seller is patient. Three percent is modest enough that you do not need to build a case around time on market. Submit a clean offer, preserve the important protections, and let the seller counter if SAR 727,500 is too low.
 
“Clean” should not mean unprotected. I would retain an inspection or condition contingency, financing protection and wording dealing with a valuation below the agreed price. The exact effect depends on the Riyadh contract and how the deposit is handled, so have the proposed terms checked locally before signing. Financing proof shows seriousness; it does not remove valuation risk.
 
One addition: decide the response deadline and deposit exposure before the offer goes out. If the seller accepts while you are still unclear about when the deposit becomes at risk, the apparent bargain can create pressure. A reasonable deadline also stops the offer drifting while it is used to test other interest.
 
I disagree slightly with leading on repair credits. If the needed work is already visible and reflected in your SAR 727,500 offer, asking for credits immediately may look like two discounts. Keep the initial price tied to present condition. If an inspection later finds something materially different, that is the time to discuss a credit, repair or withdrawal under the agreed terms.
 
The appraisal gap deserves its own decision. If the seller counters near SAR 750,000 but the lender values the studio lower, how much extra cash—if any—would you be willing to contribute? Set that ceiling privately now. Otherwise you may become emotionally committed and waive protection just to keep the purchase moving.
 
Also confirm what “financing proof” actually demonstrates. Evidence that you can pursue financing is useful, but the seller should not be led to believe the funds are unconditional if valuation and final approval remain outstanding. Clear wording is better for both sides.
 
A simple rationale could be: “Based on the studio’s current condition and the limited completed-sale evidence available to me, I’m offering SAR 727,500. I can provide financing evidence and remain flexible on completion, subject to the stated inspection, financing and valuation terms.” No criticism of the seller, no lecture about 63 days, and no inflated renovation estimate.
 
Before sending it, rank your variables: maximum price, completion flexibility, deposit amount and conditions, inspection rights, and what happens after a low valuation. You can trade flexibility on completion without trading away protections. If the seller counters, ask what would make the offer work rather than automatically splitting the difference.
 
Finally, try once more to obtain completed comparables through the agent or another locally appropriate channel. Asking prices only show seller expectations. If completed evidence remains thin, that uncertainty supports being disciplined, but it does not prove the studio is overpriced. On the facts given, SAR 727,500 looks like a credible opening rather than an antagonistic one.
 
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