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3 Easy Ways to Get Your Offers Noticed and Accepted

by Mat Piche on February 7, 2013 · 11 comments

  
Get Offers Accepted

We’ve all heard the expression, “If you’re not writing offers, you’re not finding deals”.  You’ll hear many “gurus” say you should be writing multiple offers per week in order to get that deal. But what if you didn’t have to? What if all you had to do was make your offers harder to reject? If you’re writing 100 offers and only getting 1 accepted, or none, you either love wasting your time, or there’s something wrong with your offers. So how can you get your offers accepted more frequently?

1.) Less Conditions

Reduce the amount of pointless conditions. The more conditions, the more confusing the offer becomes. A confused mind ALWAYS says NO! Insert the conditions that are essential to your deal. I know many investors that add a number of pointless clauses in order to feel more important. More like a sophisticated investor. Most of the time, their conditions are just repeating the pre-written clauses already within the offer i.e. “The seller must leave all drapery tracks and fixed items. The seller will leave any rental equipment as part of the sale etc.” These types clauses are already set in the offer! By adding them, you’re just adding cluster and making the sellers eyes cross with 3 pages of conditions. The reality is, if you’re buying single-family properties, 9 times out of 10 you’re dealing with a homeowner who is uneducated with your “savvy” tricks and clauses (9 times of 10, so is the seller’s agent!). Keep it simple and straight to the point.

2.) Cover Letter

“A cover letter? I’m not applying for a job here!” You would be surprised by how much of a difference a cover letter will make. This is where you can say that yes, you are an investor but that also means you can meet their needs in terms of having a flexible closing. This is also where you can justify the price you have given them with a short description of how you arrived at this price. Maybe the roof needs some work and you pulled some comparables with your realtor and that’s why you offered them $10,000 less than their asking price etc. It makes the offer that much more personal and also shows them that they’re dealing with a human, not a faceless mean investor looking to steal their house!

3.) Give Two Offers

Here is one for all you investors who love savvy “tricks” to get the seller to say yes. Give two offers and a cover letter for each explaining the deal. For example, you could give one close to their asking price with a longer closing and one for a lower asking price but with a shorter close. It’s a scientific fact that when you give someone options, they are more likely to pick one of them rather than say no to both.

Remember, you should be a geographic specialist focusing on one type of property. When something in your target neighborhood pops up that fits your criteria, give a fair offer(s) using these tips, and you’ll be hearing more “YES!” and less “No way!” Stop wasting time throwing garbage offers at the wall to see what sticks because you feel you are entitled to a deal because you’re an investor. Yes, you may get a few here and there but your portfolio will grow much slower using that strategy. Not to mention that this is a business and if you’re known around town as the “mean investor”, that definitely won’t help your business grow. Trades, realtors, mortgages brokers etc won’t want to work with you either. You’re wasting their time! How fast will your business grow without these essential services??

Photo: Kristian Bjornard

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{ 11 comments… read them below or add one }

Robert Adams February 7, 2013 at 3:29 pm

I wrote this article on how to get your offer accepted in this hot seller’s market in Las Vegas.

Las Vegas is currently in a hot seller’s market and with inventory remaining very low (below the 5,000 mark) deals are getting harder and harder to lock down.

With that being said, if you find a property that you want to purchase, it is important that you write up a clean, strong offer. Here are some tips to getting you offer(s) Accepted:

1.) Run the CMA (Comparative Market Analysis) and find out an educated estimated value of the property.

2.) Offer a strong purchase price. With homes selling around 10% above apprasisal value you will want to make your offer slightly above the CMA value. Offering less will get your rejected (NOT COUNTERED) 9 times out of 10.

3.) Always submit your highest and best offer the first time. Do not expect to start low and counter to a higher offer. With an average of a dozen offers on a property at any given time, listing agents are now only countering the best offer in front of them and then rejecting the others.

4.) Keep your offer clean. Pay your own closing closts, inspections, appraisals, etc. This will give the seller less items they have to counter. This will also show the seller and the listing agent that you and your buying agent are in tune with the market and it should make the process a smoother deal. When agents/buyers/sellers are not on the same page and in tune with the market it can cause problems once in escrow and the chances of closing the deal decreases drastically.

5.) Write up the purchase contract to purchase the property “As-Is”. This means you can still get an inspection in your “Due Diligence Period” and find out the condition of the property. Do not expect the seller to pay for any of these repairs as you are buying the property “As-Is”. If the repairs are minor than we advise you proceed and make the repairs yourself once you close on the property. If there are unforeseen major repairs then you can renegotiate the purchase price at that time or cancel escrow and get your EMD (Earnest Money Deposit) fully refunded. Again writing up the offer “As-Is” will keep your offer clean and less things for the listing agent/seller to counter.

6.) Submit your POF (Proof of Funds) or Pre-Approval Letter with your purchase contract so the sellers know you are capable of buying the property.

7.) This step is not a must but it does make your offer a little more competitive. Increase your EMD (Earnest Money Deposit) to slightly above the requested amount in the listing. For example if they are asking for $1,500 EMD give them $2,000. This shows them that you are serious about buying this property and you are willing to put more money down than the other bidders.

8.) Have your agent write an email or cover letter accompanying the offer explaining that you the buyer and them the buyer’s agent are aware of the market conditions and have attached a clean, strong offer that includes: and list the items above that you have agreed to only because of the condition of the market ex: higher price, paying your own fees, as-is, higher emd, POF or preapproval letter, etc.

If you practice all of these steps when submitting your offers in the current market here in Las Vegas or Henderson you will have a better success rate of getting your offers Accepted.

We hope this is informative!

Reply

Navtaj Chandhoke February 7, 2013 at 3:52 pm

Creative Real Estate offers are the only way to get great bargains.Offering the property Seller the benefits of the doubt including opinion of the buyer as well capital gains.
Writing a killer offers would have all above mention in this article, for sure.
You have made three great points which can hit the home run almost every time.

My two cents!

Reply

Mat Piche February 7, 2013 at 4:07 pm

Thanks Navtaj!

Reply

Sam February 7, 2013 at 7:00 pm

#2 – “Their needs”, not “there needs”. :(

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Mat Piche February 8, 2013 at 7:57 am

Hey Sam, Thanks for your input!!

Reply

Joshua Dorkin February 9, 2013 at 9:11 pm

Good catch, Sam. We corrected it.

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kyle hipp February 7, 2013 at 7:40 pm

I am a buy, repair/remodel, and rent out investor. I get contacted through word of mouth for off MLS sales. I am amazed at how well having 2 options for an offer works. I usually do a cover letter in some fashion as well to explain where I am coming from, so they see it is data driven not just an shot in the dark offer. I didn’t really consider this for MLS listings. I have instructed my agent to give certain reasons for things but nothing written, also never did options offers.

Good tips. Thanks

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Karen Rittenhouse February 8, 2013 at 7:54 am

We usually buy from sellers rather than through agents so I never thought about a cover letter! I’ve left it to the agent to explain which is NOT the best idea.

We usually buy “as is” which is a huge benefit to sellers that puts our offers above others.
We also let sellers know that we can close on “the day of your choice.” That puts a sellers mind at ease and, yes, they are looking for uncomplicated.

Thanks for your article, Mat.

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Mat Piche February 8, 2013 at 7:56 am

Thanks Karen!

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Robert Steele February 10, 2013 at 4:18 pm

A little off topic but – seriously? offering above CMA? Las Vegas didn’t you learn anything the last time around?

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Robert Adams February 16, 2013 at 6:18 pm

Richard,
If you want to get an offer accepted in these bidding wars coming in below comps won’t cut it. You can either sit on the sidelines and wait for the market to soften or you come in with strong clean offer and start creating positive cash flow (even if paying above appraisal value the positve cash flow is still there.)

Reply

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