Negotiating Down The Price on a Potential BRRR

[Kunaal Kumar]

I’m considering a fixer upper property in North Dallas. The property has been on the market for more than a year, and the property is currently listed at around 250k. Im relatively new, and would greatly appreciate some tips to negotiate it down to fit my numbers.

It was initially listed at 320k, and over the course of the year, the price has been steadily dropped. In between, a buyer submitted an offer but pulled out, most likely due to the property inspection.

According to my estimates, the ARV will be around 300k, and will require 30-40k of rehab. I'm using the BRRR method, so I want to be at the most all in for 80% of the ARV, which means I would need to convince the seller to 200k to be conservative. The property is already at a slight discount because of its condition. However, the current discount doesn't have enough margin to make the deal profitable, so I need to negotiate it down further.

The seller seems to be very miserly; he refuses to pay the buyers agent commission of 3% , and has instead decided that he’s only willing to pay $300 to the buyers agent at the most.

Given that the seller seems to be particularly cheap, what are some methods I can use to negotiate the price down? My initial thoughts were to leverage the fact that it’s been sitting on the market for so long, and maybe offering more earnest money. Any advice would be greatly appreciated.

Thanks in advance!