Submitting offer below asking price

[Andrew Caldieraro]

If a property listed on the mls doesn’t meet your buying criteria due to the asking price, when should you offer below the asking price vs. move on to another property? I don’t want my agent to get annoyed by “low-ball” offers, but the numbers have to make sense.

[Russell Brazil]

Originally posted by @Andrew Caldieraro:

@Russell Brazil My expectations are usually meeting or exceeding the 1% rule and netting a profit of at least $100/month per unit. So, I don’t feel I’m being overly unrealistic.

Those numbers have absolutely zero to do with determing a properties value. 

The market doesnt care what you want to net per door or what price/rent ratio you want.

If your criteria doesnt fit the market, you either need to adjust your expectations to fit what the market values the property at....or locate a market that fits your criteria. You cant force numbers onto a market. 

Amazon is currently trading at about $1500 per share and a p/e of 84. Id personally like to buy it at $400 a share and a p/e of 20. Guess what? The market doesnt care what Id like to purchase it for.