I flip houses for a living. Lack of supply drove me out of my home state, so I now buy in multiple states. I buy a lot from Auctions, sometimes I see something I want from Realtor.com. These are lower priced distressed houses. I will call the agent or a few agents, put in a full priced or above full priced cash offer. Many agents don't return calls or aren't interested in writing up offers for smaller amounts.
Any suggestions? Realtors I work with in the past have no issues obviously. But it is a struggle working with new agents, a lot of hit and miss. Some good ones, some ball droppers.
On another note, if you see something you like, how much higher are you guys going over the asking price? I assumed 5k was enough. But in many cases, it is not. Seems crazy to go 10 or 20 over asking price, why pay more than what you need, but is that what is happening now? Remember the old days when you could offer 20k below asking and they would take it if it was cash?
Hi @Fred Herschelman , as an agent if you promised me the listing when you sold it, that would get my attention. Listings are HUGE right now for agents. Earning the double commission should make it worth it for them. As far as what to offer, that really depends on the particular area but I would guess 7%-15% over asking price should get your offer noticed.
15% might be a good rule of thumb, thank you.
As far as over asking -- look and see what the market s bearing right now. It will be different for different areas and price points.
Lower price points (below 400k) in my area are not too bad due to the financing and appraisal issues. When you get into the average and higher prices where cash is king, you are seeing about 10-15% above ask. That is if ask is reasonable to the current market. When you ask more than 15% above comps, you see a huge slowdown in offers and above-ask offers.
@Fred Herschelman , I agree with Brad that promising the sale listing could very well help. And including a list of projects you have completed in the initial email may also build some overall credibility right off the bat.
Are you reaching out directly to the listing agent? Some agents will only take listings, and not deal with buyers. And the buyers agents are being run ragged with current clients, but little to show them. (I am not envious of buyers agents, particularly in this market)
Regarding pricing, in this market, I generally don't even use the listing price as a gauge, since as you are seeing it is essentially irrelevant when you are competing with people willing to go way over. (Then that sale becomes a comp and the cycle continues.) I look at what it is worth to me and offer that. You may have "overpaid" on it, but if the number works for me, I don't really care. And if I don't get it, I don't lose sleep since I went in at the price it was worth to me. But I also don't flip for a living, I do it on the side, when my wife and I have the bandwidth and see a property that looks interesting.