Real Estate Agent · Omaha, NE · Member since 2018 · 9 posts · 3 votes
6y
In today’s market it is not practical to think you can win with a low ball offer. Important to know the numbers. Costs to repair. You will win if you are not greedy!
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
6y
@Eric Roloson I understand you are trying to make a low ball offer based on two weeks but that is NOT the only factor to consider while making an offer. In this business, making a fair offer will earn you a property and reputation. Run the CAM, check the rental rates and projected repairs. There were time to make 60 cents on a dollar offer but right now 80 cents on a dollar all cash, zero seller contribution and close in seven days without ANY contingency (no appraisal) would probably get you a house.
I am a firm believer of being fair, I bought a duplex from a lady last year, offered low but fair price. Some heart burns but then she realized it was fair offer. Well, this week she called me and asked me if I would like to buy her another duplex and asked me to name the price. I gave a number and she accepted. No listing, no bidding, instant decision. That’s how good reputation will serve you.
Flipper/Rehabber · Seattle, WA · Member since 2015 · 333 posts · 459 votes
6y
@Joe Villeneuve - you wouldn’t accept an offer in the future even if over list price? Really? Credibility? Who cares - keep the earnest money and sell it again. Sounds like you’re making a knee jerk emotional decision to me :)
You said early you would never accept and offer that low or in the future from that buyer again...was that based on the "low ball" offer or other terms?
Curious your thoughts on giving a bigger picture of your low ball offer to not offend the agent.
"I'm at 155k on your 200k listing, and here why....40k rehab..ARV is 255k ... so you think your seller would be interested? If so I can submit my offer"
My question was to avoid the feelings if you called the listing agent prior to submitting the low offer and explaining why your coming in low.
@Joe Villeneuve - you wouldn’t accept an offer in the future even if over list price? Really? Credibility? Who cares - keep the earnest money and sell it again. Sounds like you’re making a knee jerk emotional decision to me :)
Sounds like you don't know me very well. I don't make emotional, or knee jerk decisions. Did you read the reasons why I wouldn't accept an offer later, even if it was at list? If you did, did you understand what I was saying?
You said early you would never accept and offer that low or in the future from that buyer again...was that based on the "low ball" offer or other terms?
Curious your thoughts on giving a bigger picture of your low ball offer to not offend the agent.
"I'm at 155k on your 200k listing, and here why....40k rehab..ARV is 255k ... so you think your seller would be interested? If so I can submit my offer"
My question was to avoid the feelings if you called the listing agent prior to submitting the low offer and explaining why your coming in low.
Not sure what you're saying/asking.
Got it. Simple answer. I never make verbal offers. They're not official, and more likely to be negotiated more by not being in writing. Why not just make the offer you want to make in writing. Either it gets accepted or not.
I don't waste time making lowball offers, and then end up playing games negotiating. I just make my offer based on my numbers.
I'm not interested in what it takes to get the property...just the deal...which is what I base my offers on.
OK so if your numbers support a 145k offer on a 205k listing, you just go with it and submit the offer. Also curious are you an agent? do you flip, wholesale, long term etc...? Thanks Joe
You said early you would never accept and offer that low or in the future from that buyer again...was that based on the "low ball" offer or other terms?
Curious your thoughts on giving a bigger picture of your low ball offer to not offend the agent.
"I'm at 155k on your 200k listing, and here why....40k rehab..ARV is 255k ... so you think your seller would be interested? If so I can submit my offer"
My question was to avoid the feelings if you called the listing agent prior to submitting the low offer and explaining why your coming in low.
Not sure what you're saying/asking.
Got it. Simple answer. I never make verbal offers. They're not official, and more likely to be negotiated more by not being in writing. Why not just make the offer you want to make in writing. Either it gets accepted or not.
I don't waste time making lowball offers, and then end up playing games negotiating. I just make my offer based on my numbers.
I'm not interested in what it takes to get the property...just the deal...which is what I base my offers on.
OK so if your numbers support a 145k offer on a 205k listing, you just go with it and submit the offer. Also curious are you an agent? do you flip, wholesale, long term etc...? Thanks Joe
You said early you would never accept and offer that low or in the future from that buyer again...was that based on the "low ball" offer or other terms?
Curious your thoughts on giving a bigger picture of your low ball offer to not offend the agent.
"I'm at 155k on your 200k listing, and here why....40k rehab..ARV is 255k ... so you think your seller would be interested? If so I can submit my offer"
My question was to avoid the feelings if you called the listing agent prior to submitting the low offer and explaining why your coming in low.
Not sure what you're saying/asking.
Got it. Simple answer. I never make verbal offers. They're not official, and more likely to be negotiated more by not being in writing. Why not just make the offer you want to make in writing. Either it gets accepted or not.
I don't waste time making lowball offers, and then end up playing games negotiating. I just make my offer based on my numbers.
I'm not interested in what it takes to get the property...just the deal...which is what I base my offers on.
First, can you put your answers/comments at the very end of these strings? I had a hard time finding this last comment.
I'm not an agent, I do all kinds of strategies...even ones I made up.
I offer what my analysis tells me to offer...tempered and timed based on what the Listing History predicts I can offer.
Having read some more of your posts on the first page of this thread, here's my feedback ...
Your first step from here should be to contact the listing agent and establish some rapport. You'll need them on your side if you're going to bid aggressively. Yes, they work for the seller. Their job is to solve the seller's problem. You need to be able to demonstrate that you understand the seller's needs based on what they tell you and then show them how your offer solves the seller's needs.
Sounds like the property's condition should give you lots to talk about, but you'll need to have a grasp of the repair costs before you try to justify deducting them from the FMV to arrive at your MAO. So, you may need a showing if you haven't been inside already.
You'll need to be able to justify a low offer if you're claiming that it's based on the property's condition.
Contractor · San Diego, CA · Member since 2018 · 432 posts · 221 votes
6y
@Eric Roloson Rural= Wild West= any offer could happen. There are seldom people willing to invest in majorly run down stuff in the boondocks. REO status would help, but make sure this is an investment and not too much of a gamble even @ 50% of asking. Consider the time it may take you to get your borrowed funds back and consider carrying the note to sell out there. I like rural stuff but it can be a really slow game fixing up these jacked up houses.. I'm still learning the car consequences!
Investor · IN · Member since 2018 · 31 posts · 16 votes
6y
@Eric Roloson
There’s a lot of ways you could structure that offer. I would do some research on the seller and see what’s on their yellow sheet. Are you paying all cash? I’ve heard of buyers getting that much of a discount on properties if they make the offer in the sellers favor. All cash, waived inspection, no appraisal from bank so you can close faster, pays all closing costs, etc. The seller just walks away with check in hand and is done with it. If you are getting a loan you can still structure it in their favor. You cover closing costs, having your loan pre written from bank, schedule inspection sooner. You being able to close sooner helps make the offer stick out of the seller wants to get rid of it. If you are working with a realtor ask them about the seller and try to get a feel of what their situation is so you can favor it in your offer. 2 weeks on the market is still pretty early I’d think but it’s worth a shot! Good luck to ya
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
6y
I’ve made lowball offers soon after it’s listed . I make my highest and best regardless of time on market . I think what it’s worth to me. Sometimes it’s close to asking but most times it’s far from it.
Rental Property Investor · Eugene/ Springfield, OR · Member since 2012 · 99 posts · 69 votes
6y
@Eric Roloson
There was a recent BP podcast episode that covered this or at least had some suggestions. The guest said he had no problem writing real low offers quickly but he usually accompanies it with a letter explaining why it’s low and breaking down what your costs are. Might also help to read that Never split the difference book by Chris Voss. (That guest wrote a million dollar offer on 2+ million dollar listing and won but I think it was a previously listed “new” listing)
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Account Closed you have good points that I am weighing out. Rural=Wild West...I think that's gonna stick :) I like the setting but I don't want to get stuck with it sitting on the market a long time. A big concern among others like you mentioned. Would you say there are any benefits to doing a rural project rather than city limits?
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
6y
@Eric Roloson yes they’ve been accepted a few times , but I make a ton of offers . Not much rehab costs , maybe a roof or heating . the sellers had these houses a long time and wanted out. Ya never know until you ask .
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@David Dachtera what would you say to listing agent if I am switching to another buyers agent? Would you call listing agent and explain the circumstances on the low offer and why I'm using a different agent? I would rather not bring unneeded drama to the table. Would you justify the offer with a letter along with the offer?
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Al Pat I agree that is important to develop a good reputation. A fair price makes sense for everybody and in your case led to another property! How distressed were the duplexes and what was your offer compared to market value?
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Vaughn A Wiebusch what if I supplied a letter with my offer pointing out the cost associated with repairs? This property is very distressed. My point being it is not really a low ball offer considering the cost involved to but it back on the market in line with other comps. The list price is a bit inflated due to the amount of work needing to be done. Seller is not willing to make any repairs.
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Lesley Resnick great comments and perspective! There appears to be a lot of contention between agents, buyers, and investors regarding this specific property. I ran the numbers and know what its worth to me based on the investment I have to put into it. How would you suggest I "lay that on the table"? It was suggested I attach a letter to the offer explaining the reasoning of my offer, would you agree this may help?
@David Dachtera what would you say to listing agent if I am switching to another buyers agent? Would you call listing agent and explain the circumstances on the low offer and why I'm using a different agent? I would rather not bring unneeded drama to the table. Would you justify the offer with a letter along with the offer?
Is there some reason you feel the need to keep a distance? Will the listing agent only talk to your buyer's agent?
Again, you need to establish a rapport with the listing agent so you're not just another "low ball offer". You need to help the listing agent solve the seller's problem. I doubt that can be done by e-mail, in writing, etc. Take the listing agent to lunch - take your buyer's agent as well, if needs be. This is a negotiation - face-to-face will be best.
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@Marci Stein do you find most of your deals on the MLS or privately? So no large rehabs? I haven't done too much with rental properties but I'm interested in shifting to more of these. Have you done much owner financing on rentals or any package deals on multiple units?
Flipper/Rehabber · Kelso, WA · Member since 2017 · 67 posts · 23 votes
6y
@David Dachtera I completely agree! I did speak with listing agent directly before I put in an offer. But once I had a buyers agent I was advised not to speak with them. I disagreed because they were not doing their job in finding the sellers needs and developing a rapport with them. I posted earlier in topic regarding this. Now I am about to put a second offer in without this buyers agent using another more competent agent. Should I contact the listing agent first or let my new buyers agent do it. Note: I already spoke to listing agent before I ever had a buyers agent and was informed the sellers were fairly motivated and to submit an offer. No response to my offer. No feedback from other agent who dodged my question if they even spoke to listing agent at all.