Offering 3% below asking on a small multifamily in Austin — sensible or too aggressive?

A

AveryGray

First-time buyer
Established
We need to decide whether to submit an offer this week. The trade-off is between opening low enough to reflect the uncertainty and keeping the terms strong enough that the seller takes us seriously.

The Austin small multifamily is listed at $805,000 and has been advertised for 61 days. It needs some updating, but the bigger problem is valuation: nearby listings support the general range, while the completed comparables we have found are too limited to give us confidence.

Would 3% below list be a sensible starting point if we include financing proof and offer flexibility on the completion date? We intend to keep the inspection and financing protections, especially because a low appraisal could change the amount of cash required. I would also rather deal with any justified repair credit after inspection than build a vague demand into the opening offer.
 
Three percent below is about $780,850, so this does not strike me as an insulting opening after 61 days. Keep the explanation short: limited completed comparables, expected updating costs, strong financing and flexibility on timing. Don’t turn it into a list of everything wrong with the property.

I would retain inspection and financing protections. A clean offer does not have to mean absorbing every unknown.
 
Before choosing the number, ask why it has been sitting. Has the seller rejected earlier offers, reduced the price, or simply had weak interest? Those scenarios imply very different negotiating room.

Also decide whether $780,850 is your genuine valuation or just an opening move. If it is only tactical, know your maximum before the seller counters.
 
The updating argument may be weaker than it first appears. If the condition was obvious when the home was listed, the seller can reasonably say the asking price already accounts for it.

Completed sales are better evidence than competing listings, although the shortage of good comparables cuts both ways. Likewise, 61 days suggests the seller has not found a deal yet, but it does not reveal whether price, terms or lack of urgency is the reason.

I would submit the figure without a long critique of the property. Attach financing proof, use the completion flexibility as a genuine benefit and set a clear response deadline. That keeps the offer credible while leaving inspection findings to support any later repair request.
 
Inspection should stay, especially for a multifamily where one visible update can lead to several less visible issues. I would avoid asking for a repair credit in the initial offer unless you already know the scope. First agree on price, then use the inspection findings to request specific repairs or credits if justified. Otherwise the seller may view the 3% reduction and a vague future credit as double discounting.
 
The appraisal gap also needs a plan before submission. If the property appraises below the agreed price, would you bring in extra cash, renegotiate, or walk away under the financing terms? Don’t promise an unlimited gap merely to make the offer look stronger. Check exactly when the deposit becomes exposed under the proposed contract and contingency deadlines; that depends on the contract and local handling.
 
One possible trade-off: keep inspection and financing, but make the inspection period efficient rather than waiving it. That gives the seller more certainty without transferring all the condition risk to you. Your agent can also ask which matters more to the seller—price, completion date or confidence that financing will hold. Flexibility only adds value if it matches their motivation.
 
That distinction helps. I’d treat $780,850 as a supported opening rather than pretend the 61 days prove a precise discount. We’ll ask about prior activity and the seller’s preferred timing, include financing proof, and set a clear response deadline.

We won’t waive inspection or financing, and we’ll avoid committing to an open-ended appraisal gap. Any repair credit will wait until there are actual inspection findings. We’ll also decide our maximum before submitting so a counteroffer doesn’t push us into improvising.
 
You must log in or register to reply here.
Back
Top