How many offers do you make per deal?

Question

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**

Joe Villeneuve · Answer

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.

JD Martin · Answer

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.

Justin S. · Answer

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

Account Closed · Answer

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.

Lee S. · Answer

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.

Steve Vaughan · Answer

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!

Joe Villeneuve · Answer

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...

Lee S. · Answer

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.

Steve Vaughan · Answer

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!

Russell Brazil · Answer

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.

How many offers do you make per deal?

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