Making an offer - seeking advice

4 Replies

Hello I am looking to buy my first investment property in King County, WA. There is one property I am interested in, but seems to be over priced. I want to make an offer, but don’t want to be insulting. Seeking advice. Offer would be about 80k bellow asking. 

is the property on the MLS? if so, I would send the comps that you used to the agent with a letter explaining how you arrived at this price.

If it is off market, I would find out why they need the money.  Sometimes it’s not about the money.   They might have a problem that needs solving.  If you can work that out, they will most likely sell to you. 

Originally posted by @Bill Plymouth :

is the property on the MLS? if so, I would send the comps that you used to the agent with a letter explaining how you arrived at this price.

If it is off market, I would find out why they need the money.  Sometimes it’s not about the money.   They might have a problem that needs solving.  If you can work that out, they will most likely sell to you. 

Thank you for the help. It is on the MLS. I'm still debating if its a good deal or not. Its a pretty big purchase for me and I'm having a hard time making my first purchase (mentally). I will talk to my agent about sending a letter with my offer - if i do offer.

To make it work- I would have to get in at my target price, raise rents by $150 and start charging for WSG. I would be able to live there for a year for free and then it should cash flow around $1400 a month (if i did my numbers correct) when i move out.

Also, I believe the current owner accepts section 8, and I'm not sure if I want to do that or not. I think I would want to hire a property manager for that - which would prob cost $560 per month.

@Amanda Dafler You absolutely have to make an offer! You have to make MANY offers, thats the whole point. You have the beginner's jitters, wanting to pull the trigger but cant really make up your mind. ITS OK! ... that too is part of the process. 

The trick is .... the more offers you make the more comfortable you become. Also, the better you get at working your numbers. Make sure to get your realtor to help with the ARV because that the most important thing to get correct, then you work your way backwards to your offer amount. Your offer amount is just that .. an offer to purchase the property at a price that will allow you to achieve your goals (execute the BRRRR strategy). Don't fall in love or get emotionally attached to the property. The most will happen is the seller accepts another offer, then you move to another property. But the seller might accept your offer, then you have a deal that fits your criteria. LET THE NUMBERS DRIVE YOUR DECISIONS! Best wishes to you on your journey