Before placing offer or after placing offer???

Question

Good evening all. Love Bigger Pockets!!! Trying to do my first buy but have a question. There is a home that is below market value in a good area....should I do the numbers and then offer and then go look at the property or should I first do the numbers, look at the property and then place an offer? I don’t want to waste people’s time. I’m ok with it but is it normal to do one way over the other?

Thanks for any help in this. If someone can elaborate that would be helpful because I don’t know if I’m actually asking the right questions.

David Koscak

Thanks for any help in this. If someone can elaborate that would be helpful because I don’t know if I’m actually asking the right questions.

David Koscak

Ned Carey · Answer

@David Koscak you cant really do the numbers if you do not see the property and know what it might need in repairs. When you are new go to as many properties as you can and evaluate them. It will help you learn the market.

There are people who do make offers sight unseen but I have been doing this 15 years and I don't. Agents are more likely to think you are wasting their time if you put in an offer without seeing the property.

Sam Shueh · Answer

Have proof of funds(loans), view it, ask what the basis for asking price. Perhaps priced for the condition, issues or just a bait to price it low to attract buyers and expect higher sale.

David Koscak · Answer

Thanks guys. Got my financing all set and liquid cash. I’m taking your advise and I am doing and finding it easier than I thought to get comps, etc from digging a little further. I appreciate it. Have a showing tomorrow and will see.

Thanks again.

Christopher Orr · Answer

I just put my first offer in on a house. Before I even found this house I was researching the markets in my back yard. Running deals learning to use the bigger pockets calculators. And educating myself on what a good deal looks like. I used a bunch of different website to look at recently sold houses and houses on the market. If you keep your eye on the mls you can see what houses flippers are buying. And the price margins there working with. I never really felt comfortable because I’ve never succeeded or failed at real-estate. I do feel confident though I know the market.  Every day I learn more that I didn’t know, I didn’t know.  Best of luck to you.

Manny Herrera · Answer

Hi @David Koscak.  Most agents will want to go with you unless there's open house showings.  They aren't going to trust giving anyone the lockbox codes.  There's a ton of homework you can do online that will not require you nor your realtor to go out.   As others alluded to, unless you're paying cash, you want to get a pre-approval before making any offers.

Good Luck David!

David Koscak · Answer

thanks guys for the input. I will definitely take your advices.

My last thing, I forgot to ask, I have an agent that I am working with....should I ask him to come to all these showings or should I go by myself? I am pretty handy and have worked with contractors before so I kinda have a good feeling of what needs to be done, not sure if that means anything, but I just don’t want to waste his time too much.

What’s your feelings on this?

Thanks again

David Koscak

Sean Lambert · Answer

Run numbers and if they look good, schedule some time to look at it.  Definitely look at it before making an offer.

Unless you're paying cash, try to be pre-approved for the loan before you make the offer (it could make your offer more appealing to the seller).

Since it's your first investment, I'd also recommend an inspection.

Good luck!

Brian Ploszay · Answer

Good question.  Since this is your first purchase, be conservative.  You need to see the property first.  Since it is a good price and if it is on the market, there probably will be multiple offers.  If there is not, then it was't such a great deal.

The problem with getting under contract on a property you are not sure about - is that you'll have to back out of the deal.

Before placing offer or after placing offer???

Most Popular Reply