Looking for some objective opinions.

We're negotiating on a property (old and very small duplex, listing around $1M) in a very desirable Los Angeles neighborhood. We offered about 3.7% below the seller's counter, but the seller says they won't negotiate further on either price or occupancy.

The seller wants to stay for about 4 months after closing and pay us below-market rent. We would technically have access to a separate 1 bed / 1 bath (~450 sq ft) during that time, but we're a family of four, so it's not realistically livable. We'd end keeping our apartment until the seller moves out.

We really like the property, but we're also not in a rush to buy and are happy to wait for another opportunity if this doesn't make financial sense.

Would you:

• Accept the seller's terms?
• Ask for a lower price because of the lease-back?
• Or walk away?