Offering 9% below asking on a Phoenix retail unit listed at $855,000

JadeShore

Homeowner
Founding Member
I have checked the nearby asking prices, the unit’s condition and its 59 days on the market. What remains unclear is the evidence behind the $855,000 price and whether the seller values price most, or would trade some of it for a reliable buyer and a suitable completion date.

The Phoenix retail unit needs updating, so I am considering an opening offer about 9% lower, roughly $778,000. I can provide financing proof and be flexible on timing, but I want the figure to read as a reasoned proposal rather than a criticism of the property. How would you frame it? I would also like to know which inspection, financing and appraisal conditions should remain in place, and when the deposit should become exposed.
 
Present it as a supportable offer, not a verdict on the property. Mention the required updating, limited completed-comparable evidence and your ability to provide financing proof and accommodate the seller’s timing. I would keep inspection, financing and appraisal protections. Nine percent below asking is not inherently insulting if the written terms show you are ready to proceed.
 
Is the unit vacant, owner-occupied or subject to a lease? That missing fact could matter more than the 59 days, because the value of a retail unit may depend on its income and occupancy position as well as physical condition. I’d also have the agent ask what the seller values besides price—speed, certainty or a particular completion date.
 
How early would the deposit become non-refundable, and what happens if the appraisal is below the agreed price? Those details would change how much flexibility I would offer elsewhere.

The 59 days may make a reduction tempting, but it does not establish that the seller is under pressure, especially without completed comparables or clarity on occupancy. I would ask for the basis of the $855,000 valuation and set a firm limit on any appraisal shortfall before submitting. If the seller wants certainty, financing proof and prompt deadlines can provide it; if the deal requires an open-ended appraisal gap, I would keep the deposit protected and be prepared to walk away.
 
The cleanest structure is: price, short rationale, financing proof, flexible completion date and a clear response deadline. Keep the explanation to one paragraph rather than listing every defect.

Make the deposit refundable while the agreed inspection, financing and appraisal conditions remain open, with the exact wording checked for the Arizona transaction. If inspection identifies meaningful work, request a repair credit then; building an assumed credit into the opening price and asking for it again later will weaken your position.
 
Also set your walk-away number before submitting. A seller may counter near asking simply to test whether 9% was an anchor. You can improve certainty without waiving protections: provide the requested financing evidence, meet deadlines promptly and let the deposit become exposed only as the agreed contingencies are satisfied. Flexibility is useful consideration in its own right, especially if their motivation is timing rather than immediate cash.
 
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