Update: a failed earlier deal raises questions about my Seoul warehouse offer

DaanGale

Real estate agent
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The lack of reliable completed-sale evidence is what makes the opening number difficult. The Seoul warehouse is listed at ₩1,566,000,000, has been on the market for 119 days and needs updating. An earlier transaction fell through, but I do not yet know whether financing, appraisal or the property's condition caused it.

I am considering ₩1,472,040,000, which is 6% under the asking price. I could support it with clear financing evidence and accommodate the seller's preferred completion timing, while keeping inspection, finance and appraisal protections. Would you present the updating allowance through the price, or leave room to discuss repair credits after inspection? The answer may depend on why that first deal failed.
 
Six percent below does not sound insulting in those circumstances. I’d keep the explanation short: limited evidence from completed sales, 119 days on the market, and an allowance for necessary updating. Attach strong financing proof and offer flexibility on timing. Don’t turn it into a long list of everything allegedly wrong with the warehouse; that tends to make the offer feel adversarial.
 
Do you know why the earlier deal collapsed? That is the missing fact for me. If it was the buyer’s financing, your proof of funds or lending readiness has real value. If an inspection or appraisal caused the failure, the asking price may be less defensible and you need to understand the issue before deciding how much deposit risk to accept.
 
I would not waive inspection just to make a 6%-below offer look cleaner. “Needs updating” can cover cosmetic work, but a warehouse may also have costly building-condition issues that are not obvious during a viewing. Keep the right to investigate, then ask for either a price adjustment or repair credit only if the findings justify it. The exact contract wording needs South Korean advice.
 
I disagree slightly with leading heavily on the 119 days. Time on market shows the current price has not produced a completed sale, but it does not prove the seller will accept 6% less. The stronger presentation is: here is the price, here is evidence the purchase can proceed, and here is a completion schedule that works for you. Let the agent discuss market history verbally.
 
Also separate the financing contingency from the appraisal gap. A lender can be willing to finance you while still valuing the property below the agreed price. Before offering, decide the maximum gap you could cover without disrupting the updating budget. If that amount is small, keep explicit appraisal protection rather than discovering later that “clean financing” was interpreted as taking all valuation risk.
 
What response deadline are you considering? Too short may antagonise a seller who is not under pressure, while an open-ended offer lets them use your number to test other interest. A clear but reasonable expiry, with willingness to reissue if discussions are active, seems cleaner than artificial urgency.
 
On deposit exposure, I would map each contingency to exactly when the deposit becomes non-refundable under the proposed contract. Inspection, financing and appraisal protections are only useful if their deadlines leave enough time to act and the exit procedure is clear. That is where local contract advice matters; broad contingency labels alone may not protect you as expected.
 
One more tactical point: don’t ask for 6% off and a large undefined repair credit at the same time. Price the visible updating into the opening offer, then reserve any later request for significant issues actually found during inspection. Otherwise the seller may assume ₩1,472,040,000 is only the beginning of repeated reductions.
 
I’d package it as a straightforward offer rather than a valuation lecture: ₩1,472,040,000, financing evidence attached, flexible completion, a defined response deadline, and normal inspection/financing/appraisal conditions. Ask the seller’s side privately what mattered in the failed deal and which completion date they prefer. If they counter near asking, you can then decide whether certainty and timing justify moving up without surrendering the protections.
 
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