Offering 5% below asking on a mixed-use building in Sydney

[slate.curious]

The response is due tomorrow, so the uncomfortable choice is whether to act quickly or risk paying more than the evidence supports. The Sydney mixed-use building is listed at A$1,360,000, has been on the market for 13 days and needs updating. Similar asking prices are easy to find; useful completed comparables are not.

We are considering A$1,292,000, which is 5% below the list price, with financing evidence and flexibility over completion. Would you keep the explanation to the required work and thin sales evidence, or provide more detail? Before submitting anything, we also need to understand how the lender treats the mixed-use element and whether we could cover an appraisal gap. I do not want a short deadline to cost us inspection, finance or valuation protection.

 

[bakesAndBeam]

A 5% reduction is A$68,000, so I would offer A$1,292,000 without writing an essay defending every dollar. Say it reflects the updating required and the limited completed-comparable evidence, then emphasise proof of financing and the flexible completion date.

I would keep inspection and finance/valuation protection. If the seller dislikes the price, they can counter. Thirteen days is not long enough to assume distress, so avoid suggesting they are desperate.

 

[LilaNorth]

I would first ask whether the deadline comes from the seller or from your own schedule. If there are competing offers, A$1,292,000 may simply lose rather than start a negotiation.

Also clarify how your lender treats the mixed-use element and what happens if the valuation is below the contract price. “Clean financing” is less reassuring if there is an appraisal gap you cannot cover. Keep the deposit exposure controlled, and use the inspection to identify real defects; negotiate repair credits afterward rather than guessing at them in the opening offer.