Negotiating Purchase Contract

[Scott Michael Gross]

Hi BP Community! I am close to closing on my first deal and could use some advice in negotiations.  

Quick context: under $100K (good for a newcomer like me, I think), cash deal, Harrisburg PA, not best area but not the worst, currently has a tenant paying pretty good rent.  

I believed the house was overpriced because of the location and had been on the market for a few weeks when I found it.  I offered 20% below asking price and they countered 10% below.  I recountered at 15% below pending inspection and now they said 15% below if no inspection or 13% below with an inspection.  

Two questions: 1. Is it unusual to ask to speak with a current tenant living there? It is an investment property so I would want the tenant to be around longer than end of contract at the beginning of next year.  2. Should I stick or let go of this extra 2%? I know it is not much money because we are talking low property value but I come from a finance background and 2% is still 2% which makes the deal better.

Any help is greatly appreciated and thank you for all the help that BP has provided as I have started this RE journey!

[Nathan Gesner]

It's a tenant-occupied home in a marginal neighborhood for a low price and they're willing to drop the price even further in a hot market? That's a red flag. If choose 15% and no inspections, what you find later will probably cost you a lot more than 2%.