Do You Breakdown Your Offer Price to the Seller in Detail?

[Daren H.]

Hello BP, I have a newbie question. I am interested in making an offer to a private seller on a property I would buy and hold. The seller is a burned out landlord who is looking to sell. Anyway, when presenting my offer I believe there are certain modifications to the asking price that can be reasonably justify to the seller. Such as using CMA for similar properties to establish market value (to align expectations), reduce market price by realtor fees (~6%-8%), reduce price by estimated repairs needed.......,etc. Even after adjusting for these type of things on most occassions you get to a point where you simply need an "unsupported" dollar value discount in order for the property to fit in your particular investment box. First, do most investors worry about walking the seller through your offer price in detail or do you just say this is my price to buy? Assuming you do detail your offer to the seller, do you simply explain after the adjustments that you also need a $XXXX discount in order to buy?