Offering 9% below asking on a Tokyo retail unit — sensible or too aggressive?

E

EarlyGlass

Buyer
Established
First time doing this, so I am trying to keep the decision narrow. The Tokyo retail unit is listed at ¥86,440,000, has been available for 116 days and needs updating. Asking-price comparables are close, but I cannot find enough completed sales to establish the likely clearing price.

I am considering opening 9% below asking, roughly ¥78.66 million, with financing evidence and flexibility on completion. How can I explain that figure without antagonising the seller? I am also reluctant to waive inspection or financing protection. What else should I watch, particularly around the deposit and any appraisal gap?
 
A 9% opening is not inherently insulting if the reasoning is brief and property-specific. Point to the updating required, limited evidence from completed comparables and the certainty offered by your financing and flexible timing. Avoid presenting 116 days alone as proof that it is overpriced.

Include a clear but reasonable response deadline. I would not waive inspection protection or commit to covering an unlimited appraisal shortfall merely to make the price look stronger.
 
Also try to learn what the seller values before deciding whether price is the only lever. A preferred completion date or fewer procedural delays might matter more than squeezing the headline figure.

One question: are you planning to request repair credits after inspection? If so, opening 9% low and then seeking broad credits could be received very differently from an offer where the initial discount already accounts for visible updating.
 
I would be cautious about anchoring on exactly 9% when the completed-sale evidence is weak. It may be sensible, but it is still an arbitrary percentage rather than a valuation. Set a maximum based on the unit’s condition, expected work and any financing appraisal, then be prepared for a counteroffer.

Before submitting, have the offer spell out the inspection and financing conditions, response deadline, treatment of any appraisal gap, and when the deposit could be at risk. Those details depend on the contract and Japanese practice, so get the wording checked locally rather than assuming a familiar process applies.
 
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