What Should I offer??

Question

I'm about to put an offer in on a 4 plex. It was originally listed for $269 then dropped to $250. The super hott agent told me that she had received one cash offer around $205 and told them to kick rocks. She also said they are very motivated to sell at this point. I want to get in at $230. What should I offer?

Nathan Miller · Answer

I don't like the games that a lot of people play by offering low and meeting in the middle. If I want to pay $230k for a place, I offer $230k and say "final offer". If they counter, I re-counter at $230k and if they re-counter I just ignore it until they come back and say "fine, 230k!".

Don't get emotionally invested and be prepared to walk away. That will get you the best deal every time!

Don't get emotionally invested and be prepared to walk away.  That will get you the best deal every time!

Walter Key · Answer

@Mitch Borgen Offer $230K. If you really don't want to wait on a counter, specifically state in the offer that this is your Best and Final offer. Best of luck.

Chris Grenier · Answer

Seems like you answered your own questions @Mitch Borgen, if you want to Offer $230K then that's what you Offer!

Send a strong letter with your Offer with comp's and reasoning as to why you are committing at that price and rehab estimate. Be sure to make them think you are doing them a favor by presenting such a higher offer than what they already received at $205K!

Mitch Borgen · Answer

@Walter Key Its a pretty staright forward market deal. $230 is fair market value in my opinion. It's fully leased up- low rents, not in great shape but doesn't necessarily need rehab.

Mitch Borgen · Answer

@Nathan Miller Thanks man, thats what I'm looking for. I'm not trying to mess around with counters at all.

Walter Key · Answer

Need more info here. Is $269 fair market value? Is this a retail sale, REO, shortsale, etc? What condition is it in? How much rehab cost do you expect if it's needing rehab?

What Should I offer??

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