Need Advice Before Making an Offer – What Am I Missing?

Question

Hey everyone!

I’ve been on the hunt for properties and finally found a couple that I’m seriously thinking about making an offer on. 🎉 I’m still finalizing things with my lender, but before I move forward, I want to be 100% sure I’m covering all the key steps.

Here’s the checklist I’ve put together so far:

• Home inspection – to catch any hidden issues.
• Appraisal – to confirm the property’s value matches the offer.
• Financing contingency – securing my loan approval without surprises.
• Title search – ensuring there are no liens or legal issues.
• Seller disclosures – reviewing any known problems upfront.
• Neighborhood research – making sure the area fits my investment goals.

Are there any crucial steps I’m missing or anything you think I should focus on more? I’d love to hear from anyone who’s been through this process—your experience and advice could make all the difference! 🙌

Thanks in advance for your help!

Mitch Messer · Answer

As an investor, there should be a Step Zero: Analyze the financials!

Nothing else on your list matters if this purchase doesn't achieve your investment goals.

Also, you have NO WAY to determine your offer price until you run the numbers!

Remember: Once you close the seller will get paid, guaranteed!

The real estate agent will get paid, guaranteed!

The escrow agent will get paid, guaranteed!

The loan broker will get paid, guaranteed!

The ONLY person not guaranteed to get paid is YOU!

As an investor, that's your ONE and ONLY JOB!

Derrick E. · Answer

Yes. They can vary greatly. Also, some cities have fees while others don’t. Just something I always check for now.

Hector Espinosa · Answer

@Derrick E.do you mean property taxes?

Derrick E. · Answer

Checking to see the cost of state and local taxes. This can vary greatly from one city/state to another.

Cortney Huber · Answer

I agree with Jonathan--most of these items will take place once you are under contract. Are you working with a real estate agent? A good agent will stay on top of those things and guide you through that process, and will make sure to include those contingencies in your offer. A good agent can also educate you about things you might not be thinking of. I apologize if you've already thought through what I'm about to say, but these are some of the things I would focus on as an investor:

1. How does this property fit into my goals; do the numbers work, does it fit my strategy, etc

2. What is my exit strategy if things don't go according to plan; also, do I have enough reserves to weather some storms with this property

3. What is special about this property--what's going to make it easy to rent (or do whatever you need it to do)--is it in a great location? Does it have a good layout? Does it stand out in a good way? Would it make a nice mid term rental if I need a revenue boost? Is it especially cute or charming or spacious? How would I market this in order to appeal to future tenants

4. What is the management plan--will this property present an undue number of management headaches

5. Is this an asset I want to have in my portfolio

I'd be happy to brainstorm with you or talk through your thought process. Feel free to DM!

Jonathan Greene · Answer

That looks like an AI list because 4/6 happen well after you are under contract on a property so don't make that much sense. Of course, for 3, you want to have your financing lined up, but you don't complete the contingency until you are under contract and headed toward closing. 1, 2, and 4 all happen after you lock the property up.

6 is the one you should focus on beforehand, especially if from out-of-state. They way I look at OOS is asking myself, would I want to visit here? Would I want to live here, not necessarily this house, but this town? If not, why are you buying there if you don't even want to go there. You will be too detached.

5 is required in some states and not in others so a lot if left to your viewing on-site so if you are not seeing it in person, you need full photos and videos of every part of the basement and attic so you have an idea of where the trouble lies before making an offer.

Need Advice Before Making an Offer – What Am I Missing?

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