Investor · Miami, FL · Member since 2016 · 100 posts · 22 votes
I've put in offers for over 15 houses and still haven't had an offer accepted. I'm offering cash, 5 day inspections, full price (and sometimes more on some of the houses) and still no luck.
Maybe somebody can shed some light on what's going on or what to expect???
I'm buying in the Miami and Broward areas.
Thanks!
Have you circled back to any properties you put an offer on but didn't get to see what they sold for?
If asking was 300K, you offer 330, but it sold for 410 - there is your answer.
I have seen a ton of properties sell for 125%, of asking in certain markets where inventory is as dry as Moore County, TN.
This is exactly it.
Yoni, I'm not sure why so many people are concentrating on your agent. If your agent is willing to work with you and put in a lot of offers, great. It most likely comes down to the price you are offering. So I would repeat Eric's question, have you looked at what the properties you offered on sold for?
I buy properties off the MLS, among other ways. Here is my process:
- See the property as soon as it is listed with my agent.
- Have my agent call the listing agent to get a feel of what their client would like to see (not always willing to discuss the price), and what is the ideal closing.
- Analyze the comps to see at what price the property makes sense. If the price comes back somewhere it would make sense, I offer that price, with no financing or inspection contingencies, and the closing date the seller wants.
Sometimes this works, often it doesn't. My last MLS purchase was a bidding war, I paid $431,000, I believe the asking price was $406,000. In my market the other day, a property was listed at $1.1 million, and sold firm for $2.3 million, more than double asking. The property was probably worth just under $2 million in my eyes. The asking price is just a suggestion. Figure out what the property is worth to you, and offer that. If all the properties sell for more than you are offering, than you are not offering enough, and either need to reconsider what returns you are willing to accept, change markets, or take a break from real estate.
Credit is loosening up, REO inventory is down, lots of flippers entering the market in the exact price point you're talking about. Great creative, knock on the listing agents door, ask to see the offer submission, use the listing agent to submit your offer. Think outside the box and get the deal. Writing about it here on BP won't get you the deal, just some ideas. You've seen all the ideas here, now put them to work. Good luck.
Residential Real Estate Broker · New Port Richey, FL · Member since 2016 · 18 posts · 5 votes
9y
In Florida we are all Transaction Agents. We can work both sides legally. So as an investor I would go directly to the listing agent. Just make sure you have not signed any relationship paperwork with your current agent as these can be enforceable but seldom are not!!