Investor · Charlotte, NC · Member since 2021 · 45 posts · 18 votes
Hello BP,
I've had recent experiences on listings on the MLS where I will submit an offer price and the seller will either ignore me completely or try to get me to bump my price way up. I've sent out quite a few offers but I feel as if nobody will take any of my offers serious enough to even counter. I understand it's a sellers market and what not but the numbers have to make sense on my end. but then I will see notifications the home has sold for below listing price anyway and now I've potentially missed out on another opportunity.
I understand it's a sellers market and what not but the numbers have to make sense on my end.
The bottom line is that the numbers must work for you. There is no point in owning a money pit or low performer.
You can however make yourself more attractive to sellers, they want a clean, quick, easy deal that will not fall apart. Get prequalified, offer the quickest closing you can, less or no conditions and inspections, etc...
Make yourself more attractive than the next guy....that's not always about money.
But you are at more risk here so know what you're doing ;-)
Investor · Charlotte, NC · Member since 2021 · 45 posts · 18 votes
4y
@Bruce Woodruff that's the thing it'll be my first deal so taking on risks like that and losing a great deal of funds is not the best way to go about it
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Gotcha - Well then it's a numbers game...just keep submitting offers that you are comfortable with. Eventually there will be a seller who takes you up on one. Be patient, this is not a timed event :-)
As @Bruce Woodruff has stated, you need to field a cleaner offer than the others. What do your offers look like? What does the property look like? Does the offer match the condition of the property? Are you working with an agent? Are you preapproved?
Lots of questions to answer here, but you should always submit according to numbers that work for you and you have to be patient. Some sellers will bite, most wont. You have to find the seller's motivation. I've called listing agents directly to find out more about properties and you'd be surprised by how much information you can get in a 5 minute phone call.
Specialist · Johnson City, TN · Member since 2021 · 139 posts · 146 votes
4y
Anyone that really knows anything about real estate has a good Idea of what a property is really worth. Right now we have alot of unmotivated sellers that just list with a big price hoping to find a fool. A correctly priced property in this current market won't last but a few days. As an example let's say there is a house that among the knowledgable real estate people its deemed to be worth 300k. The unmotivated seller prices it at 400k to catch someone napping. The seller willing to negotiate prices it at 325k. Realistic seller prices at 300k and stands firm. Desperate seller prices it at 275k and the fool price it lower than that. The sub 300k listing will probably be sold an hour before list or even before. The question is where are you offering in this spectrum? Are you offering 300k on the 325 listing or you offering 250k on the 300k listing?
I understand all to well that your offer has to meet your financial criteria but the problem seems that your criteria dosent match the market and sellers might view you as a bottom feeder that isnt worthy of consideration.
As has been alluded to earlier, if you want to low ball in this market, make a all cash offer with proof of funds. Large earnest money deposit, no contingency and 10 day close. This puts you way ahead of the iffers and maybe and those that need a third party to actually provide the funds.
Investor · Charlotte, NC · Member since 2021 · 45 posts · 18 votes
4y
@Bob Okenwa yes I'm already pre approved, the seller pulled it off market before the holidays and then when he posted it back there's a engineers recommendation that says the foundation has wood rot and needs work and it is improperly framed. so that has to factor into my costs now. so now that has to play some type of role. so now my offers I'm considering now is lower than what I originally said with this new information which he had before I visited the property initially. so now my rehab budget just went up. my offers his on a docusign the seller was very motivated about my original offer before he pulled it off the market then he lowered the price. another 15k and I'm working with an agent as well