Making and offer to off market property owner

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Making and offer to off market property owner

Robin Evans
Rental Property Investor · Dayton, OH · Member since 2022 · 103 posts · 49 votes

Hello, My Name is Rob, and I am new to the forum and Pro. I have a question about presenting. I am looking at a property and I am ready to send an offer to the OFF Market owner. not sure how to present the offer. The Market Valuation is around 76000 per the auditor's website I can offer $100.000 which allows room for negotiation. Any suggestion on how to go about sending the offer ( hard copy / Phone conversation) and how to express my interest in the property to the current owner?

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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y

If you can get a meeting with them in person, you'll have a much higher chance of getting the sale. I have had many off market property sellers back out when I brought them an offer on terms that they wanted. Meeting them in person will help you gauge their motivation to sell.

[email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
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  • Mason Hickman
    Real Estate Agent · Sandwich, MA · Member since 2014 · 974 posts · 636 votes
    4y

    @Robin Evans

    I wouldn't put a lot of stock in what the property is assessed for. How have you been communicating with the seller? Personally, I think a written offer sent over to the seller while you talk through it with them is best. Ideally, you present it in person. You learn a lot from their body language and people much more easily hang up the phone on you than throw you out of their house. 

    1Reply
  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    If you can get a meeting with them in person, you'll have a much higher chance of getting the sale. I have had many off market property sellers back out when I brought them an offer on terms that they wanted. Meeting them in person will help you gauge their motivation to sell.

    [email protected]614-502-5316Podcast Guest on Show From DoorDasher to $1.5 MILLION in Real Estate (All at 22 Years Old!)
    1Reply
  • Jake Wiley
    Investor · Charleston, SC · Member since 2022 · 233 posts · 198 votes
    4y

    The how is important for sure, but the most important thing is to get out there and make the offer.   When making offers it's almost always going to be more of a volume game.  My advice is don't overthink it make it happen, and keep moving.   

    From a how perspective, if you've spoken with them and you think they'd be receptive get them a written offer as quickly as possible to show you are serious.   Time kills all deals.   I've taken unsolicited offers myself several times, but been approached countless times.   The people that broke through the noise for me, brought a legit offer, meaning the numbers were in alignment with the market and they backed it up with a written offer the same day.     

    Agreed with the comment on the tax appraisal site numbers, they aren't always in line with market reality.   I'd look on a Redfin or Zillow to get info on recent sales in the area, price per square foot, etc to make sure you are in alignment.   If you make an offer that is offensive directly to a property owner you are done.    

    Good luck.   

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  • Sherwin Gaddis
    Wholesaler · VA · Member since 2022 · 5 posts · 0 votes
    4y

    Jake,

    This all seems like a very fine line to walk between all the participants in a real estate deal. How do you make an offer that is not offensive to a seller?

    Years ago when I was selling my home. I called a "we buy houses" number and the person on the phone offered me half of the city assessed value of the home at the time. There was nothing wrong with my home and I went on to sell it at the full retail value at the time.  

    Now being on the other side. It just doesn't look like there is enough wiggle room in the market for wholesalers. Am I viewing this wrong? I am just trying to get a realistic view of what the number looks like. 

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  • Tim DelaneyPro Member
    Buffalo, NY · Member since 2018 · 790 posts · 530 votes
    4y

    @Sherwin Gaddis I'm still finding great deals on the MLS, so yes, there are definitely still deals for wholesalers. You just have to find the right one and that may take some time and effort.

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  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    4y

    I would try to meet the owner at the property to discuss the paperwork or a coffee shop an informal setting where they feel comfortable seems to work the best for me. 

    [email protected]319-288-5382
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  • Sherwin Gaddis
    Wholesaler · VA · Member since 2022 · 5 posts · 0 votes
    4y

    I guess what we are struggling with is the anatomy of a good deal. The opinion on what is a good deal varies so widely. Also, it seems that the higher the dollar value of the property the better a "deal" can be crafted from the wholesale point of view. 

    Thanks Tim,

    @Tim Delaney

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  • Tim DelaneyPro Member
    Buffalo, NY · Member since 2018 · 790 posts · 530 votes
    4y

    @Sherwin Gaddis absolutely correct, definitions of a good deal can vary. You need to define that for yourself - whether it is a certain dollar figure per wholesale or a certain percent per wholesale or dollars/hours spent on a deal. Whatever the metric is, start tracking it religiously so you know how you are doing and where you are finding your best deals.

    Podcast Guest on Show How to Buy Yourself a 6-Figure Income Stream
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  • Robin Evans
    OP
    Rental Property Investor · Dayton, OH · Member since 2022 · 103 posts · 49 votes
    4y
    Originally posted by @Mason Hickman:

    @Robin Evans

    I wouldn't put a lot of stock in what the property is assessed for. How have you been communicating with the seller? Personally, I think a written offer sent over to the seller while you talk through it with them is best. Ideally, you present it in person. You learn a lot from their body language and people much more easily hang up the phone on you than throw you out of their house. 

    Thank you for the reply. As to your question I have yet to make any contact, it was a driveby and I like the historical essence of the property, my realtor pointed it out to me so I thought I would make contact with the owner but not sure how to approach the situation. just got his name from the county website, this would be a cold introduction to say hey do you want to sell this particular property to me. I want it as a buy and hold.

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  • Maurice D.
    Coppell, TX · Member since 2015 · 485 posts · 310 votes
    4y

    the question is how did you arrive at you 100K number?  when presenting the offer, simply state it, but be ready to back up the number.   "my offer of 100k is in line with the market and the conditions of the property, it needs xyz repairs" etc

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