Help Me Negotiate This Duplex! In Realtime!

8 Replies

I am negotiating for a duplex in the Southside neighborhood of Pittsburgh which was originally listed at $325K. I own a comparable property 9 blocks away from this one which I closed on for $240.5K in Nov of '14. The duplex brings in $2400/month in gross rent (please, don't bring up the 2% rule) in a neighborhood that has an average vacancy rate in the mid-to-low single digits. There is ALWAYS demand.

I am asking for the BP Community help me make my next counter-offer.

FACTS:

Originally listed at $325K.

My original "low-ball" offer: $230K

Seller's counter: $299K

My Counter: $240.5K (what I paid for my duplex)

Seller's counter: $285K.

My Counter: TBD. Help me! I think the absolute most I would pay for this property is around $255-$260K. How can I get them to continue coming down into this range??

Have you used the analyze tool? I think free members get a few free uses of it. 

@Matt Cramer

 I have not. I'm going to check them out now. Thanks for the advice!

Assuming you have used the analyzer tool, the next move I would make is... (again depending on the analysis) if you only want to spend $255k, then put in that offer and make it your "best and final." emphesis that is the absolute final offer and if the can't meet it, then there is no deal.

Does it bring in more or less rent that your current duplex? Is it in better or worse condition? What about appliances, hvac, roof etc... better or worse than yours? The market in many places has been rising quick but that doesn't mean it's worth that much more. Is it worth more to you to have the convenience of the location being near yours?

I would offer 250K/5K seller assist next.

It doesn't matter what the seller wants. What is the building worth? By the numbers - what's it worth? Don't get caught up in the excitement. What's it worth - that's what you can afford to pay. If you do anything other, you'll regret later...

Good luck!

Prior to ANY offer I send, I always have the final number I am willing to pay logged.  If a deal can't be made under that final number, I walk.  

Don't let the emotions in negotiating get the best of you and overpay.  What's the value of the property?  Whats the condition of the property?  What (if any) sort of leases are in place?  Etc... Etc...

Before moving further ~ Find that absolute final amount you are willing to spend.  If its not met, walk.  If you see it still on the market 30 days from now, start over :) 

Originally posted by @Steve M. :

Before moving further ~ Find that absolute final amount you are willing to spend.  If its not met, walk.  If you see it still on the market 30 days from now, start over :) 

 That is a good idea.  Unless they turn down an offer for 280K or more, that will be where negotiations should start on their side.

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