120K Cash Offer Vs List It For 155K...Seller Says "Give Me 120K"

2 Replies

Not long ago in one of my posts I stated how I like to work with clients. I told this owner I could get them around 150K-155K for their house or would buy it outright for 120K. It needs some minor rehab but I could probably flip it fast>>> for 145-150K. If I want to put in around 6K it would probably bring in the 160K range. Seller sent back a signed contract today for my 120K cash offer. What did I do right...and why did he choose the lower amount?
1. I was 100% up front and honest (I believe this is the only way to treat people).
2. I didn't put any pressure on the seller. I made the offer weeks ago via a contract.
3. I gave the seller options: fast fast sale..quick cash....or more money to wait.

Sometimes it isn't "just about the money". I have found that making offers, giving people "space", and respecting their time to make a decision is important. I would have been very happy to help this seller either way...with listing the property or an outright purchase.

Same business plan I have, just got my license so I can make cash offers, creative offers, or list, and let them choose.  I initially did a Direct Mail campaign and realized how many potential deals I was passing up by only being able to throw out low offers and hope one would stick occasionally.  I also think it's more respectable and easier to give them an offer as you did and let them decide what works best for them, makes you appear as less of a predator/bottom feeder.  Nice work.

The seller signed today.  This is the house: 4/2/2 Adams built home 2143 living area.  It is proof there are still deals out there. I purchase it with a combination of cash and private money. It will have great cash flow and with aggressive financing will be free and clear in five years.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here