Offering 10% below C$472,500 on a Vancouver warehouse after 61 days

cairn.common

First-time buyer
Established
The collapsed deal is the detail that made me reconsider a straightforward low offer. This Vancouver warehouse is listed at C$472,500 after 61 days on the market, and it needs updating, but the seller appears willing to wait. I do not yet know whether the earlier buyer lost financing or whether the property, valuation or inspection caused the failure.

Completed-sale evidence is thin, so I am considering C$425,250—10% under the list price—supported by financing evidence and flexible completion. Would it be better to make that conditional on satisfactory inspection, finance and appraisal, then decide whether to proceed once the failed deal and updating costs are clearer? I also want the deposit terms to limit exposure rather than using a large deposit merely to make the offer look stronger.
 
After 61 days and a failed deal, 10% below is not inherently insulting. I would keep the explanation short: limited completed-sale evidence, required updating and your assessment of value. Asking-price comparisons do not prove buyers paid those amounts. Make the other terms genuinely convenient, but don’t call the offer “clean” if it still has conditions—spell them out clearly.
 
The missing fact is why the earlier deal collapsed. Financing failure says little about the warehouse; an inspection or appraisal problem could be highly relevant. Can your representative ask without suggesting that you assume something is wrong? Also, what does “updating” mean in cost and scope? A round 10% discount is harder to defend than a number tied to identifiable work.
 
I’d also resist sending a long defence of the price. Sellers often debate each assumption instead of responding to the overall offer. State the limited completed comparables and updating requirement, then let the combination of price, financing evidence and flexible completion speak for itself. A respectful offer can still be firm.
 
I don’t yet know why the first deal failed, so I’ll try to get clarification before submitting. The seller’s lack of urgency is the main reason I’m worried C$425,250 will simply be dismissed. I’m leaning toward retaining inspection and financing protection rather than compensating with a higher opening number. How would people handle the response deadline and deposit without weakening the offer?
 
Use a reasonable response deadline that allows the seller to consider the whole package, rather than an unusually short one that looks tactical. On the deposit, the amount is less important than understanding exactly when it becomes exposed and under what circumstances it remains refundable. Have the wording explained under the applicable British Columbia process before signing; don’t rely on assumptions carried over from residential deals.
 
On the updating, decide whether you want the risk reflected in the opening price or addressed later through repair credits. Trying to obtain both for the same visible work may irritate the seller. I’d price known updating into the offer, then reserve any later request for material issues discovered through inspection. That makes your rationale more coherent.
 
There is a trade-off in saying you have strong financing while retaining a very broad financing condition. The seller may fear a repeat of the collapsed deal. Proof that financing work is advanced, together with a clearly defined condition period, may help—but I would not waive protection merely to improve appearances. Make sure the lender’s valuation approach is understood, because an appraisal gap could become your cash problem.
 
I’d structure it as: C$425,250, evidence supporting your ability to complete, flexible completion dates, and only the conditions you actually need. Inspection should remain meaningful, not so compressed that it is useless. Financing wording should account for valuation, and the deposit terms should be reviewed before submission. If the seller counters, ask whether price or certainty matters more to them before changing several terms at once.
 
Plan the second move now. If C$425,250 is rejected or countered, know your maximum price, whether you would shorten any condition period, and how much flexibility you can offer on completion. Don’t let the 10% figure become an anchor for you as well as the seller. With thin completed-sale evidence, disciplined limits and retained due diligence matter more than winning the first negotiation round.
 
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