When you’re buying a condo for sale in Downtown Los Angeles, your real estate agent will most likely talk to you about making an offer on your dream home.
So should you make an offer that’s below asking price?
In some cases, it’s the right thing to do. Here’s what you need to know.
Should You Make an Offer Below Asking Price?
Sometimes making an offer that’s below the seller’s asking price is the right choice, such as when:
- The appraisal comes in low (or the home is overpriced)
- The condo has been on and off the market more than once
- You’ll have to make significant upgrades
You can always offer anything you want to for a home. Your agent can guide you, even if none of these conditions are present.
#1. The appraisal comes in low (or the home is overpriced)
If the home appraisal comes in low, your lender is only going to finance you for the home’s value – you’re not going to get another dime out of the bank. That means you’ll have to put more of your own money up as a down payment to even things out. In that case, it’s a good idea to offer what the lender says the home is worth (unless you really, really want the home and you’re convinced that it’s a great investment).
If the home is grossly overpriced when your agent compares it to other, similar listings, it’s also okay to offer less than asking price.
Related: What is a home appraisal?
#2. The condo has been on and off the market more than once
Sometimes sellers just can’t move the condo – and they try again and again to sell it. In that case, it may be appropriate to offer them less than what they’re asking. (Conversely, maybe they can’t sell it because they’re unwilling to budge on the already-too-high price.)
#3. You’ll have to make significant upgrades
When you’ll have to pour your own money into the condo to make it habitable – or at least updated enough to feel like you’re living in the 21st century – you can offer less than what the seller is asking.
Related: What is an as-is home?
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale