Offering 2% below asking on a Montreal warehouse — sensible or too aggressive?

A

AveryElm

Property investor
If I misjudge this offer, I could either overpay or expose a large deposit on a property the lender values differently. This is my first purchase at this level: a four-bedroom warehouse property in Montreal listed for C$1,863,000, on the market for 59 days and requiring some updating.

I’m considering C$1,825,740, which is 2% under asking, supported by financing proof and flexibility on completion. There are nearby listings around the same level, but too little completed evidence for me to know whether they support the seller’s figure. Does that opening leave sensible room to negotiate, or does the unusual warehouse configuration make the percentage almost irrelevant?

I also need to decide on the response period, deposit amount and any request for repair credits. I do not want to give up inspection, financing or appraisal protection merely to strengthen a modest discount, so what would you make the next priority: clarify the seller’s motivation, obtain the comparables behind the asking price, or confirm the lender’s view of the intended use?
 
Two percent below is not inherently aggressive, especially after 59 days. I would keep the explanation short: limited completed comparables, condition, and the certainty offered by your financing position and flexible timing. A long list of faults can feel more antagonistic than the number itself. I would not waive inspection or financing merely to make a relatively modest discount look cleaner.
 
One missing fact: how is the warehouse currently configured and how do you intend to use it? The four-bedroom description could make ordinary residential comparables a poor match. That also matters for the lender’s valuation. Before settling on 2%, ask what properties the listing side used to support C$1,863,000.
 
I’d also separate comparable asking prices from completed transactions. Active listings show what sellers hope to receive, not what buyers accepted. If reliable completed comparables remain unavailable, decide your ceiling from the property’s condition, expected updating and the risk of a low appraisal rather than treating 98% of asking as automatically fair.
 
I disagree slightly with the idea that the main concern is offending the seller. The bigger danger is that 2% below could still be too high if the asking price is optimistic. Submit the amount you can defend to yourself. If an appraisal comes in lower, know in advance whether you can cover any gap, renegotiate, or exit under the wording of your conditions.
 
The offer can be framed positively: price of C$1,825,740, evidence that financing is being arranged, flexibility on completion, and a straightforward response period. Then state that the amount reflects the updating required and limited evidence from completed comparables. Avoid attaching an itemised renovation wish list unless those costs are well supported; it invites arguments over every line.
 
Pay attention to the response deadline and deposit terms, not just price. A very short deadline can create pressure but may also irritate a seller who needs time to consider the unusual property and financing. A very long one leaves you exposed while they shop the offer around. Your deposit timing and circumstances for its return should be clear in the written offer under Quebec practice.
 
On repairs, I would inspect first rather than demand a general credit now. The visible updating may already be reflected in your opening price, while an inspection could reveal a different issue worth renegotiating. Asking for 2% off and then seeking credits for the same cosmetic work can weaken your position. Keep inspection protection broad enough to cover the building’s actual characteristics.
 
“Clean financing” should mean credible proof that you can proceed, not that you absorb every lending risk. There is a difference between showing readiness and waiving the financing condition. Given the limited completed comparables, appraisal risk sounds material here. Ask the lender exactly what evidence it can provide without disclosing more personal financial information than necessary.
 
Leila’s point about timing is important. I’d make the deadline long enough for a genuine decision but not leave it open-ended. Seller motivation matters too: 59 days may indicate flexibility, but it could equally mean the seller is patient. Your flexible completion date may be more valuable than another small movement in price, so ask which timing they prefer before submitting.
 
Set three numbers before negotiations start: the opening offer, the amount you would accept after a counter, and the absolute ceiling. Include estimated updating and a possible appraisal gap when choosing the ceiling. Otherwise a counter close to asking can pull you upward simply because the difference looks small relative to C$1,863,000.
 
One final caution on deposit, financing, inspection and appraisal clauses: their effect depends on the exact wording and Quebec requirements. Don’t rely on a casual assurance that a condition is “standard.” Have the written offer checked by someone qualified locally before signing, particularly the deadlines for satisfying conditions and what happens to the deposit if financing or inspection is unsatisfactory.
 
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