How would you negotiate this deal?

[Christopher Lane]

Hey team, curious about a situation I've found myself in.  Found a duplex selling as two singles, each as half of a side by side.

Properties are the same seller, and each is listed at $59,900 making it a grand total of $119,800.  Both have been on the market for 160+ days.

How would you all go about this? 

My initial thoughts are to offer $75k for both. And negotiate from there.

[Frank Wong]

Originally posted by @Christopher Lane:

Originally posted by @Jai Reddy:

@Christopher Lane

I'd find out what the current owner bought them for and when, usually through the County Assessors website.

I would look at comps of recent sales of similar properties in the area.

I would thoroughly walkthrough the units themselves.

Then I would come up with my offer price, and add a contingency for repairs after a thorough inspection is performed.

 I am unable to walk the properties myself as I am out of country, however, I can have my parents do it. A reason I'm offering so low is to maximize cash flow, BUT it will leave me with a big reserve for contingencies.

 Hi Christopher,

Offering a price low to maximize your benefits is not a reason and a way to negotiate a deal. There is no incentive for the seller in this scenario.  What you want to do is educate the seller and make the seller feel like they got a fair deal. No one wants to sell something and feel like they got ripped off. 

How do you do that?  You need to first get comparable sales in the area. Have your parents walk the property and come up with a list of things that need to be repaired.  Now you have some concrete information to go back to the seller.  Explain to the seller this is what units are selling for in the area.  This is what is needed and cost for repair. This is how much you will save selling directly to me without paying real estate commissions.  This is how much time you will save selling to me.  I am a serious buyer that will buy them today.

By going about it this way you have a better chance to succeed and get the deal close to your ideal price.  It's not about you, make it about them. That is true sales that's how you get deals done.