Seller increasing asking price by 8%, calls it CPI

[Peter Nikic]

Wondering if anyone ran across something like this and how best to tackle it? I had an agreement to purchase a multi family property last year but wasn't able to for certain reasons. Now I'm ready, but seller has added 8% to purchase price due to CPI (Consumer Price Index?).

I'm already dealing with the substantially higher interest rates on the mortgage this year as opposed to last year. How do I justify an additional 8% to the price? How do I handle or respond? 

With high inflation, higher mortgage rates, the encertainty of a recession or as I've heard many say that we're in a "real estate bubble", what does one do?

Any thoughts or experience with this?

[Arn Cenedella]

@Peter Nikic

With no contract, this is a new negotiation.
Doesn’t matter what was said or done a year ago.

If you believe the property doesn’t make sense at a 8% higher value, you shouldn’t buy it.

To present a different perspective……

Based on my experience, multifamily values have increased by way more than 8% over the past year in most locations.

So if it was a good buy last year, I suspect it may still be a good buy at 8% more even with higher interest rates.

Something to consider:

Is the current rent roll higher or lower than it was a year ago?

I suspect it should be higher.

Good luck…