Investor · Loves Park, IL · Member since 2015 · 53 posts · 17 votes
Dear BP community,
I just made an offer on a fourplex and am looking for negotiation advice. The property is in really good shape and had a new roof done on 2014. The area is a B- neighborhood so it will not be too difficult to find tenants but the appreciation will be minimal. The seller listed it at $170,000 and I just made an initial offer of $144,000.
How do I negotiate once the seller counters? In what amount increments? What amount should I set as my max offer? Any other advice? Please see the following for more details.
Dude - what's the thing worth to you? Whatever underwriting methodology you are using - what does it say the thing is worth? Pay that or walk - property ownership is no freaking picnic; we do it cause it makes money. Well, it only makes money if you buy right. What's it worth?!
Why are you talking about market value - what does that even mean? And why does it matter?
Pay whatever the property is worth - to you - based on your business plan.
Just a quick update for you guys: My agent told me that another offer was accepted when I tried to put in a bid of $160K. I don't know what the offer amount that was accepted was. Perhaps I should have gotten to $160K sooner, but that's a lesson learned. Now back to the drawing board.
Just a quick update for you guys: My agent told me that another offer was accepted when I tried to put in a bid of $160K. I don't know what the offer amount that was accepted was. Perhaps I should have gotten to $160K sooner, but that's a lesson learned. Now back to the drawing board.
Bummer. Keep an eye on it though. I don't recall the source but have read that something like 40% of accepted offers do not close. If it does close you van see what it sold for and with your agent reevaluate your negotiations etc. You may find another party simply paid too much. I like doing autopsies on deals I don't get.