Brand new to bigger pockets here. I am a part time real estate agent. My full time job has a non traditional schedule and I have several days a week off which allows me enough time to be an effective agent even though I'm part time. I've been doing it for a few years now and definitely know my way around a transaction. My broker is my cousin, so I have a great resource in my corner as well. Anyway, I digress... I'd like to buy a "move up" property for my family and keep my current home as a rental. The market here in CA is absolutely brutal for buyers right now. For example, the last listing I had got over 10 offers in under a week, including cash. Just being a financed buyer, even though my income, DTI, FICO and asset situation is strong, I feel like I'll have a hard time competing. I am going to attempt to find my own seller off the market and create my own deal. Not only can I get it at a slight discount because there will be no commission for a seller to pay, but I'm looking to eliminate to competition this way. My wife and I have a couple of our "dream" neighborhoods picked out. I'm curious as to what the best strategies are for identifying potential properties, how to approach the homeowners (letter, door to door, a written offer, etc) and how to write a fair and solid price (I'm thinking full price offer based on comps minus 6% because of no commission but throwing in some cash or creditiing closing costs to the seller to sweeten the deal a little bit. I'll take any and all advice. Thank you!
Write or type and honest letter expressing exactly but briefly your story and what you are looking to accomplish. People will eat that up.
Drive the neighborhoods you are interested in and note the exact addresses you would like to buy. Build out a list, not sure how large that number would be, but hand write the address on the envelope. I personally like to include something chunky like a coin or a token or paperclip the letter together as opposed to staple. Helps to increase your open rate.
When it comes to price, don't make an offer. Just ask them "We all know the market is on fire right now, but taking into consideration the time and money you would save with a direct transaction what would you be willing to sell your home for?"
Don't make the offer or discuss price via any medium other than the telephone.
Thank you so much for the advice David. Awesome tip on the paperclip over the staple increasing the open rate. I will also be sure to handwrite.
Type the letter so it can be standardized, but sign it by hand and hand address the envelope.