Making an offer

Making an offer

Richardson, TX · Member since 2008 · 47 posts · 0 votes

OK I'm sure this has been asked and answered a billion times.

I'll get right to the point. Is it acceptable (in the investor world) to pick a % and thats what I'm dicounting every MLS asking price and see who bites?
Or dare I ask. At what point would your realtor fire you as a client if you continue.

Just had to ask.

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Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
10y

Nine years later, I wonder how @Michael Campione went with that?

(In '06, whatever % he always offered off list price, he STILL paid too much!)

You still there, Michael?...

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  • Boonies, PA · Member since 2008 · 333 posts · 15 votes
    19y

    If I did that I don't think my realtor would return my calls. He barely returns them now.

  • Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
    19y

    I've done it before with Letters Of Intents. I didn't go off of list price though, I went off of a CMA. I found a new, hungry realtor and had her make about 50 offers a week. She needed something to do anyway. I ended up getting one deal out of it.

  • Richardson, TX · Member since 2008 · 47 posts · 0 votes
    19y

    LOL. I had a feeling that would cause a stir. I can appeciate that mach.
    OK so I am looking for property in another state. TX
    I'm happy with the realtor I am working with so I really don't want to chase him off but being this is the first rental property I'm looking for (as you may gather from other threads "rule of 100"), guess I may be trying a little too hard.
    The point is, in a level market (generally speaking) how do you or how much can you justify shaving off an asking price from out of state without p--- off the realtor and having the seller laugh at you?
    Or do you find a property, bite the bullet, jump in and offer the asking price on contigency of apprasal and inspection. I do trust the realtor's first look at the property. He has already steered me away from some potentialy bad deals. And given me some insight on the area.

    You can tell me to shut up now.

  • Richardson, TX · Member since 2008 · 47 posts · 0 votes
    19y

    Hi Ryan!

    Wish I had found this site before. Since this guy has been in the business awhile its doubtful he spends the day counting holes in the celetex. But then I never thought to ask for a CMA. Duh. Guess I have too much of a sence of loyalty. Until you drop the ball.
    Anyway, never thought of beating up a new guy. Well at least she got a lot of practice writing offers. :wink:

  • Member since 2008 · 249 posts · 6 votes
    19y

    Great question. As a realtor/birddog/investor, I don't have a problem with low-balling on a regular basis, but don't think it's always the answer. I think it's important to know the value of a property and what margin of profit you need to make and then to make offers on the properties that make the best sense for you within the established parameters.

    The number of offers you make isn't nearly as important as the quality of them and whether you get responses or not. If your realtor/birddog is sending you tons of properties, then one or both of you need to narrow down the search and begin searching for more specific deals.

    This means you won't be making as many offers, you'll be keeping your realtor/birddog happier and you'll be making better offers because it makes sense to offer more sometimes to ensure that you get the deal.

  • Cape Coral, FL · Member since 2008 · 469 posts · 32 votes
    10y
    Originally posted by @Ryan Webber:

    I've done it before with Letters Of Intents. I didn't go off of list price though, I went off of a CMA. I found a new, hungry realtor and had her make about 50 offers a week. She needed something to do anyway. I ended up getting one deal out of it.

     So ultimately she didn't find it worth her time? 

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    10y

    When dealing with the MLS (which I rarely do anymore) I like searching for key words in the listing (like motivated, flexible, bring all offers, etc) and looking for long days on market, like over 200.

    Another method may be to target a price/sqft in a given, specific market.  That's more of a jump on it as soon as it's listed approach.  So I would either offer on things brand new or have been lagging.  I don't shotgun low-ball offers.  Not in a smaller town like mine.  Waste of time and rep.  Good luck!

  • Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    10y

    Nine years later, I wonder how @Michael Campione went with that?

    (In '06, whatever % he always offered off list price, he STILL paid too much!)

    You still there, Michael?...

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