How many offers do you make per deal?

19 Replies

For those of you getting deals on MLS how many offers do you average per deal you actually get accepted/close on? Trying to reach some goals per @Brandon Turner 's podcast and figuring out what level of activity I need to employ. **Obviously this is highly variable just looking for some idea** 

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com

With all the tools and resources I am very elaborate for putting in offers, however I would say I close on 1 in every 5 offers I throw out there.

I was going to say very few since my offers are specifically catered to solve the sellers' problem. My stuff is all off-market, though. How do you get to seller motivation on the MLS? That would drive me crazy! Looking forward to reading what other folks say @Ryan Dossey !

@Steve Vaughan I have only ever done off market stuff however it comes in waves. So I got my Broker's License to make this a fulltime job. If I can dig one deal a month out of the MLS it'll pay my bills. Anything that comes off of the marketing is just icing beyond that. I've put in 5 offers so far. 1st one rejected. Waiting to hear back on the 4.

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com

This week = 50% out of 10 offers

Last week = no offers

Week before = 1 out of 8

Week before that, can't remember...doesn't matter.

Why do you ask?  The number you are looking for has no value since it isn't consistant.  It all depends on supply and demand, market conditions that can change weekly, availability of funds, specific type o deal your business plan directs you to next, etc...

I imagine being a licensee in this e-paperwork world it is much easier to submit offers than it used to be.  Good luck on your other 4 offers @Ryan Dossey ?  Say 22-ish% or don't you track maybe?   I ask you because I know you buy right.  Thanks for any insight!

Originally posted by @Steve Vaughan :

I imagine being a licensee in this e-paperwork world it is much easier to submit offers than it used to be.  Good luck on your other 4 offers @Ryan Dossey ?  Say 22-ish% or don't you track maybe?   I ask you because I know you buy right.  Thanks for any insight!

 My success rate is around 95% (nobody is perfect).  I don't measure my success by the number of addresses but by the number of $$$$$$$$.  I don't collect properties, I collect rent checks.

This is why I don't know, or really care that much, what my % of offers to accepted offers would be, since it is in no way reflective of how successful I am.  In fact, if I put out 10 offers that were all countered with new AP's higher than what my max offer was, and I passed on them all, I would consider my success rate to be 100%.  Sometimes the best deal you make, is the one (or one's) you don't.

There is rarely a property on my local MLS that I feel an offer would be worth the effort. I could throw out low offers continuously and I'm sure one would stick occasionally but I'm concerned I would alienate every other Agent/Broker in my area to the point it ends up hurting me more the helping. Thoughts?

Originally posted by @Lee S. :

There is rarely a property on my local MLS that I feel an offer would be worth the effort. I could throw out low offers continuously and I'm sure one would stick occasionally but I'm concerned I would alienate every other Agent/Broker in my area to the point it ends up hurting me more the helping. Thoughts?

Further proof that not all markets are the same. I can throw offers at MLS listings all day and make a lot of money

Originally posted by @Joe Villeneuve :
Originally posted by @Lee S.:

There is rarely a property on my local MLS that I feel an offer would be worth the effort. I could throw out low offers continuously and I'm sure one would stick occasionally but I'm concerned I would alienate every other Agent/Broker in my area to the point it ends up hurting me more the helping. Thoughts?

Further proof that not all markets are the same. I can throw offers at MLS listings all day and make a lot of money

Agree, and this is why I initially was looking to invest out of state but after reading more on BP and doing some thinking I came to the conclusion that finding off market properties local to me would be a smarter and more profitable strategy. I made one offer recently on an MLS listing that needed an all cash offer due to it's condition, only listing I've seen in 8 months worth putting an offer in on. Someone came over the top of me with a higher offer. I offered my max, nothing I can do if someone else wants to lose money or make nothing on a deal.

Are you asking how many offers total on houses per house closed on, or how many offer/counteroffers per house closed on? On everything I have, probably 5 offer/counters before coming to an acceptable price is average. On total number of offers vs total deals, I'm not sure - maybe 50? I'd have to count whatever we couldn't come to terms on or deals that ultimately fell through or we walked. 

Also, to speak to another thought from above, I couldn't possibly care less if anyone is offended by my offer. I offer what I need to in order to make money. If the buyer thinks it is low ball or unfair, they can not respond at all, or come back at the same price, and I know we can't do business. I'm not offended in the least, it's all just about doing business. I have a fiduciary responsibility to myself to purchase property at the lowest possible cost, and they have a responsibility to myself to sell at the highest possible price. The salesperson is just a come-along in the grand scheme, as they make their money as long as we can come to terms, so they have Zero meaning on negotiations. 

@Ryan Dossey - We write 52 offers for every one that we close.  Hope that helps.  

Originally posted by @Lee S. :
Originally posted by @Joe Villeneuve:
Originally posted by @Lee S.:

There is rarely a property on my local MLS that I feel an offer would be worth the effort. I could throw out low offers continuously and I'm sure one would stick occasionally but I'm concerned I would alienate every other Agent/Broker in my area to the point it ends up hurting me more the helping. Thoughts?

Further proof that not all markets are the same. I can throw offers at MLS listings all day and make a lot of money

Agree, and this is why I initially was looking to invest out of state but after reading more on BP and doing some thinking I came to the conclusion that finding off market properties local to me would be a smarter and more profitable strategy. I made one offer recently on an MLS listing that needed an all cash offer due to it's condition, only listing I've seen in 8 months worth putting an offer in on. Someone came over the top of me with a higher offer. I offered my max, nothing I can do if someone else wants to lose money or make nothing on a deal.

 What stopped you from investing out of state?  I deal with out of state investors all the time.

Originally posted by @JD Martin :

Are you asking how many offers total on houses per house closed on, or how many offer/counteroffers per house closed on? On everything I have, probably 5 offer/counters before coming to an acceptable price is average. On total number of offers vs total deals, I'm not sure - maybe 50? I'd have to count whatever we couldn't come to terms on or deals that ultimately fell through or we walked. 

Also, to speak to another thought from above, I couldn't possibly care less if anyone is offended by my offer. I offer what I need to in order to make money. If the buyer thinks it is low ball or unfair, they can not respond at all, or come back at the same price, and I know we can't do business. I'm not offended in the least, it's all just about doing business. I have a fiduciary responsibility to myself to purchase property at the lowest possible cost, and they have a responsibility to myself to sell at the highest possible price. The salesperson is just a come-along in the grand scheme, as they make their money as long as we can come to terms, so they have Zero meaning on negotiations. 

How many offers you're making to get a deal. Not the back/forth. I'm trying to get 1-2 deals a month strictly off of the MLS. While that's all well and good I like to break things down to a daily goal. Ex: I need to make 3 offers a day. Etc.

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com

Originally posted by @Ryan Dossey :
Originally posted by @Jd Martin:

Are you asking how many offers total on houses per house closed on, or how many offer/counteroffers per house closed on? On everything I have, probably 5 offer/counters before coming to an acceptable price is average. On total number of offers vs total deals, I'm not sure - maybe 50? I'd have to count whatever we couldn't come to terms on or deals that ultimately fell through or we walked. 

Also, to speak to another thought from above, I couldn't possibly care less if anyone is offended by my offer. I offer what I need to in order to make money. If the buyer thinks it is low ball or unfair, they can not respond at all, or come back at the same price, and I know we can't do business. I'm not offended in the least, it's all just about doing business. I have a fiduciary responsibility to myself to purchase property at the lowest possible cost, and they have a responsibility to myself to sell at the highest possible price. The salesperson is just a come-along in the grand scheme, as they make their money as long as we can come to terms, so they have Zero meaning on negotiations. 

How many offers you're making to get a deal. Not the back/forth. I'm trying to get 1-2 deals a month strictly off of the MLS. While that's all well and good I like to break things down to a daily goal. Ex: I need to make 3 offers a day. Etc.

 I get what your trying to do.  It's similar to what people do with direct mail, look at your deal rate per piece sent then do the math on how many piece you need to send to hit X target (give or take of course).  Makes sense to me and I'm sure others are doing this.

It's definitely market dependent like mentioned above. I look at what is listed on the local MLS and I can't believe anyone is buying the houses, even as primary residences. I've noticed that anytime a decent house goes on the MLS it sells quickly but that seems to be 1 in 10 listed, home values are still going up though.

Originally posted by @Joe Villeneuve :
Originally posted by @Lee S.:
Originally posted by @Joe Villeneuve:
Originally posted by @Lee S.:

There is rarely a property on my local MLS that I feel an offer would be worth the effort. I could throw out low offers continuously and I'm sure one would stick occasionally but I'm concerned I would alienate every other Agent/Broker in my area to the point it ends up hurting me more the helping. Thoughts?

Further proof that not all markets are the same. I can throw offers at MLS listings all day and make a lot of money

Agree, and this is why I initially was looking to invest out of state but after reading more on BP and doing some thinking I came to the conclusion that finding off market properties local to me would be a smarter and more profitable strategy. I made one offer recently on an MLS listing that needed an all cash offer due to it's condition, only listing I've seen in 8 months worth putting an offer in on. Someone came over the top of me with a higher offer. I offered my max, nothing I can do if someone else wants to lose money or make nothing on a deal.

 What stopped you from investing out of state?  I deal with out of state investors all the time.

I initially was planning on being more passive and buying 2-4 houses out of state a year after realizing I couldn't just buy off the MLS locally (200k+ houses renting for $800-$1200 a month). I then decided that I have the time to be more of a full time active investor so i'm cutting back on some of the other businesses that I do and putting that time into Real Estate because it will be more lucrative in the long run.

@Lee S. Thank you. I know its subjective. I'm not looking for a guarantee just an average of "what to expect" obviously I'm offering what makes sense as an investor so I'm expecting plenty of people telling me to get lost. But it seems like the average expectancy is 50-60 offers per deal. (I have had a few people PM me who I guess didn't want to post it). 

Medium head icon colorRyan Dossey, Call Porter | http://Callporter.com

Originally posted by @Ryan Dossey :

@Lee S. Thank you. I know its subjective. I'm not looking for a guarantee just an average of "what to expect" obviously I'm offering what makes sense as an investor so I'm expecting plenty of people telling me to get lost. But it seems like the average expectancy is 50-60 offers per deal. (I have had a few people PM me who I guess didn't want to post it). 

 Good luck, let us know if you figure out a consistent number over time.  I'm sure that will fluctuate based on economy/market conditions also.

Originally posted by @Lee S. :

There is rarely a property on my local MLS that I feel an offer would be worth the effort. I could throw out low offers continuously and I'm sure one would stick occasionally but I'm concerned I would alienate every other Agent/Broker in my area to the point it ends up hurting me more the helping. Thoughts?

 I agree with you that throwing out a ton of low ball offers in a market where that is not acceptable can hurt your reputation with other agents.  I have seen this happen to some investor/agents.  Ive also seen them make the mistake of making offers site unseen on properties, getting it under contract then letting it go...also creating bad will amongst agents.  The people who do this in my market quickly get blackballed.  These things are probably perfectly fine in many markets, but are frowned upon in others.  Just a great example of why it is important to know your market.

Medium logo lf re cire box white bboxRussell Brazil, Associate Broker w/ Long & Foster | [email protected] | (301) 893‑4635 | http://www.RussellBrazil.com | MD Agent # 648402, DC Agent # SP98375353, VA Agent # 0225219736, MA Agent # 9052346 | Podcast Guest on Show #192

Following this as well @Ryan Dossey in the exact spot you're in and trying to see if MLS is worth the effort and how many offers I should be putting in per day.

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