What do you think about asking the broker if the seller might negotiate an LOI offer at a certain price before submitting it?
Hi @Brian Keeler - It all depends on the broker. An LOI is nice because it puts something in writing and since you're creating it, you can tailor that message instead of relying on the broker to relay your offer. What I mean by that is... sometimes there are things you can say or convey in that LOI other than price that can sway the buyer and not "get lost in translation". You can include a cover letter as well to make a connection with the buyer.. And with something in writing it automatically makes it a more serious offer instead of being perceived as just another tire kicker the broker or buyer is wasting their time on.
Hi Brian, We always ask the Broker the "whisper" price - Although the sales price may be listed as TBD - The seller will usually have a targeted "whisper" price.
Then if your price is far, yet you feel you still would want property and that you've done a great analysis - then I would approach broker to let him know you like the deal - yet are unable to make the whisper price work, explain that you do not want to insult the seller or the broker ( as you are building these relationships) The selling Broker may give you some words of wisdom to win the deal, as they have undisclosed info.
When you make your offer always include your resume and maybe your story on why you want this property and why you are a good fit. Perhaps your PFS " Personal Financial Statement - and proof of funds or liquidity, are also helpful.
Every step made works together for a profitable learning experience!!!
Typically LOI are used for commercial properties and is the typical method to place an offer on before sending them the multipage commercial contract. But a LOI is not typical on a residential property.
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