Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
sconnelly

Making an Offer

Recommended Posts

Hi everyone,

Hopefully you can straigten me out. I keep holding myself back from making more offers than I should. My question is, after you have the property information and do some research as to the market value, rent command etc do you just lay out the terms that YOU need to do business with the seller OR do you ask them FIRST to tell you what there asking price is, what there monthly payment would need to be etc?

 

Sometimes I get caught up in trying to approach deals as "I am here to TRY and get you what you want and help you" opposed to here is what I am offering to you Mr. Seller take it or leave it.

 

Voice in my head is reminding me also "first who mentions price losses" but I know in this business if they are motivated enough and their property is a problem for them then it shouldnt be an issue. Make offers and move on.

 

Thanks for any thoughts you have.

Share this post


Link to post
Share on other sites

I don't care what they want for a price. I will ask. Price really doesn't matter. What really matters is what can the deal pay as an investment.

 

Ask

Want

Need

 

Focus on need of the seller and see if you can match it.

Share this post


Link to post
Share on other sites
I don't care what they want for a price. I will ask. Price really doesn't matter. What really matters is what can the deal pay as an investment.

 

Ask

Want

Need

 

Focus on need of the seller and see if you can match it.

Here, here Jonathan. I don't worry about price either. If their asking is too far out of line I will try to bring them back to reality, but if they insist on their price I will contract for that amount. The market will generally convicne them of their error :P

Share this post


Link to post
Share on other sites

TC, every homeowner has a price in mind when offering their property for sale. I'll always ask what that price is and, more important, how did they arrive at it? Was an appraisal done? An Agent's CMA? Did they pull the number out of the air? But I want to have some idea where that number came from. Regardless, I will then do my homework and make an offer based on that, not on the homeowner's dreamy vision. If the reality of the market and the homeowner's reality are far apart, I will ask them to justify their price, rather than me having to justify mine.

Bottom line, TC: stop the Paralysis of Analysis and make offers. Most will fall by the wayside, but a few will stick, and then you're on your way. Good luck!

Share this post


Link to post
Share on other sites

A friend of mine was looking to lease a house about a month ago. (This person doesn't know that I do this type of work.) They were telling me how they were bargaining with their lease prices. I have never heard of this nor would I ever do it myself. Bargain on selling price -yes, lease price-no. Does this happen on regular basis with you guys?

 

morgan

Share this post


Link to post
Share on other sites

Sure. Why not? It all comes down to market conditions. Who's in control? Buyers or sellers? Tenants or landlords? Two of the three most recent deals I did required that the owner knock down their rent or the deal wasn't going to happen.

Share this post


Link to post
Share on other sites

×
×
  • Create New...