Offering 6% below asking on a Johannesburg mixed-use building

E

eli.gale

Property investor
Established
The 102 days on the market first made a 6% discount seem straightforward, but the lack of dependable completed-sale evidence has made me less certain. The Johannesburg mixed-use building is listed at ZAR 5,187,000, and the work required is not yet clearly priced.

I’m considering supporting the offer with proof of finance and a completion timetable that suits the seller. Is that enough to make the figure look reasoned rather than arbitrary? I also want the contract to protect the deposit if finance, valuation or inspection conditions fail. Would you negotiate the visible work into the opening price, or wait for the inspection and request repair credits against specific findings?
 
Six percent below does not sound inherently aggressive. Present it as a supportable starting point, not a verdict on the property: limited completed comparables, updating costs and uncertainty around valuation. Include financing proof and your completion flexibility.

I would not waive inspection or finance-related protection. The offer should also state clearly what happens to the deposit if a condition is not met. Give the seller a definite response deadline, but not one so short that it looks tactical.
 
What kind of updating is needed—mostly finishes, or items that could materially affect cost? That distinction matters before deciding whether to reduce the price now or seek repair credits after inspection.

Also, 102 days on the market does not necessarily reveal seller motivation. Ask whether completion timing, certainty of finance or price matters most to them. Comparable asking prices are useful context, but they do not show what buyers actually paid.
 
I agree on the protections, but I would avoid giving the seller a long argument for the discount. Too much justification can invite them to debate every line. Submit the number, financing proof, flexible timing and a brief reference to condition and limited completed evidence.

If they counter, do not automatically split the difference. First work out whether your lender’s valuation could create an appraisal gap and how much repair exposure the inspection reveals.
 
Before signing, try to obtain the closest completed comparables available, with similar mixed-use characteristics rather than merely the same area and price range. Then have the offer wording checked locally so the inspection, financing, valuation and deposit provisions work as intended in South Africa.

I’d keep repair credits out of the initial offer unless a known defect already has a credible cost. Otherwise, preserve the inspection right and negotiate from actual findings. A clear response deadline is useful; seller motivation may become apparent from whether they accept, counter or ask for more time.
 
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