Making a low cash offer appealing in a hot market

[Francesco Barbati]

Hello BP crowd!

I am about to make a cash offer for a condo and the market here is hot (Boca Raton, South Florida) from what the buyer agent said. I am really motivated in acquiring that place at the right price and it will probably be main residence for a couple of years, and the I move out and rent it.

The place is not a tear down, but an old lady has been living there for the last 20 years, and it needs to be update it. More that $15,000 are need it, probably $20,000

The listing price is $150,000. I would like to close at $110,000, paying cash, no financial and appraisal contingency. I believe their target price is $130,000/135,000.

What would be the best plan, approach, strategy?

I am waiting for the check to clear out in bank account, and then I will call the listing agent.

What should I say to her? 

[Derrick W.]

Start with the basics. A water heater over 6 years old is nearing it's end.  Roofs and a/c that are 18+ years old are likely on death row. 

Replacing outdated flooring can be figured by googling floor cost at  lowes.  Calling a painter with a few square footage measurments can get some solid numbers. 

If it was me I would decide on my absolute top doller that I'm willing to spend. Then I would offer 10k less. This gives me room to come up on my price.  Then I would be clear that this is a cash offer and that we can close in X ammount of days. The absolute sooner the better because money talks. Then if my number can't be met then I would start dropping the repair/updated cost in there.  I'm no pro but sometimes it works and some times it dosnt.