Making An Offer With Eyes Wide Open
Making An Offer With Eyes Wide Open
Many new investors willing to jump into the fray of actively purchasing property, view the process of submitting an offer as comparing today’s property values in the neighborhood and particularly on a specific address to help them determine what they are willing to pay for the property and offer the seller. Often times this may also include age of the property, location, rentability, utilities, and such. All good things to take into account before deciding on an offer. All these things are 100% focused on the buyer’s perspective and only half of the picture. What they fail to consider the seller’s perspective.
The point of this post is to challenge investors to take a step back and try to view things from the other side of the fence. Understanding the seller’s motivations will help, you as an investor, make a better offer that solves the problems faced by the seller. If your offer provides a viable solution to the seller, it’s much more likely to be accepted.
Granted if you’re not dealing direct with the seller this will be next to impossible to do. Which is why I encourage investors to go direct to the seller. Deal one on one whenever possible. In order to gain a better understanding of the property ask questions such as:
- How much is owed?
- Are there back taxes?
- What other liens are on the property?
- Who’s name(s) is on the property?
Oftentimes, just putting a price out there to the seller is not enough. If you can determine his/her motivation for selling first, you may then be able to come up with a more creative solution that meets the seller’s needs and increases your chances of getting your offer accepted. Ask the seller pertinent questions such as…
- How much is their mortgage payment?
- Why is the owner selling?
- What’s going to happen if they don’t sell?
- How much does the seller want in his/her pocket?
Armed with this information, you will then be better equipped to make an offer the seller won’t refuse.