Home Buying & Selling 6 Effective Tips to Ensure Your Offer Gets Accepted

6 Effective Tips to Ensure Your Offer Gets Accepted

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Making an offer is one of the most exciting steps in the home buying process. It’s even more exciting when your offer is accepted, especially when it turns out to be considerable!

I love writing offers and negotiating purchase contracts. There is something fun and fulfilling to take action to buy your next property!

Writing a real estate investment offer is an art. This is a much more complicated process than the usual homebuyer suggestions.

Here are some tips I used to secure a great deal without emptying my wallet!

Don’t be obsessed

This is difficult, but you should try to be as emotionally uninvolved as possible. The moment you attach to the property, it becomes difficult to leave. This means that you are vulnerable to accepting conditions that you shouldn’t.

When you are emotionally obsessed, it is more difficult to make sound and logical decisions. Humans buy emotions and justify them with logic. It’s not a situation where you want to find yourself in a purchase as important as a real estate investment.

For this reason, it is in the best interest to treat this process as analytically as possible. The numbers should always be the most important Part of the deal for you!

Give them a name for their price first

No matter what you do, don’t list the price first if you’re lucky enough to negotiate the terms of the property you find off the market. Let the seller tell you that they want to get out of their property.

One of the first rules of negotiation is that you don’t want to name the price first. That’s because you may be thinking of very different numbers. Their desired price can be even lower than what you offer!

I have seen this directly in many situations. Common places to see this bear fruit are flea markets and garage sales. Go to the flea market and find what you want to buy. Keep in mind the amount you will pay, then ask the vendor, “How much is X?”

You will be amazed at how many times the vendor names the price under what you are willing to pay.

Related: Basics: Tips for finding a home and making an offer

For example, I was looking at a printer that I thought was a simple garage sale flip. I’m willing to pay anything under $ 10. When I asked the vendor, “How much is this printer?”

He said, “Yes, what about 50 cents?”

Yes, I bought this printer for 20 times less than I was willing to pay! Then I sold it for $ 81 — 16,200% revenue!

Imagine if you offered $ 100,000 to your home and the seller received $ 80,000. Or what if you offered $ 80,000 and the seller just went down to $ 100,000? They may end the negotiations rather than counter your offer.

There are situations where the seller does not give you a price. They may instead say “name your price”, and I’m not going to throw away the numbers first. In these situations, it’s definitely better to name the price than to offend the seller.

However, in a perfect world, you don’t have to specify the price first.

Send multiple offers

There are many strategies for making an offer to your home. One of my favorites is to send multiple offers for the same property. This can be done in a variety of ways. Here is one example.

You find a home listed in MLS for $ 100,000 and make the following offer:

  • Offer 1: $ 50,000 cash
  • Offer 2: $ 75,000 on a traditional loan
  • Offer 3: $ 100,000 in seller funding

The above numbers are just examples. All offers vary based on cash flow opportunities and trading potential.

The reason I like to write multiple offers is because the seller likes to have options. It makes them feel like they are in charge and makes them more satisfied with the options they choose.

I like that. Because I can make a smoking transaction with cash or an OK transaction with little (or no) money! Moreover, I feel that the seller is likely to offer the opposite offer rather than simply rejecting my offer. This makes sense as there are several options to counter.

Try using this hack. It’s painful for a realtor to write multiple offers for the same home. If you are in the buyer’s market (more homes are for sale than buyers), your agent may be able to escape by verbally calling these offers. If the seller thinks it has potential, you can draft it into an official offer. My agent can effectively “send” a large number of offers in a day, so I love doing this.

After all, real estate investment is a number game. Therefore, the more offers you submit, the more contract-based transactions you will have.

African-American businessman with a coffee cup and a young smile in the city

Offer to pay the closing cost on the first offer

When I submit a property offer in MLS, I always make an offer that is at least $ 10,000 cheaper than the asking price (except for some very hot markets). I do this even if I think the property is worth the full asking price.

However, this first offer also proposes to pay 50-100% of all closing costs / fees associated with real estate transactions. That way, if the seller disagrees with my offer, I can say, “Sure, if you pay 100% of the closing cost and commission, I will buy at the full asking price.”

By doing this, you can reduce the amount of money you bring to the closing table. That is, buy at a discounted price (if you receive the first offer) or buy at a lower price (if they pay the closing price / commission). I love this win-win situation!

It can be summarized as follows: “Do I buy at my price and your terms, or at your price and my terms?”

This is a fun and easy trick to add bargaining tactics to take advantage of.

Related: How to provide a (nearly) non-lossable guarantee

Understand the contingency

The contingency is a great way to cover your ass. The downside of bringing a lot of contingencies to an offer is that the overall offer is weakened. Sellers prefer offers with less contingencies. This means that the deal is likely to close (because there are few loopholes that the buyer can leave).

For this reason, it is important to fully understand the contingencies so that you can comfortably include some important things in your contract. You want to make your offer as strong as possible, and writing 30 contingencies in your offer will often hinder your bargaining ability. It’s an act of balancing. Don’t miss too many contingencies that you are not satisfied with the risks involved.

This all gets easier as you write more offers, buy more properties, and continue to build your real estate empire!

Willing to leave

There is no such thing as a perfect deal. But no deal is worth your sanity. There are always other properties there.

Don’t get emotions involved in the buying process. Always remain as objective as possible to ensure that you buy the best deal possible.

I know I’ve already mentioned the above feelings, but it’s very important that I had to include them again. If you buy logically (based on numbers), the results will be much better than if you allow emotions to get involved in the process. With that in mind, you need to be willing to leave any transaction!

Homeowners can know when you “need” a transaction. It’s not easy to hide this poor atmosphere, and sellers can smell the blood in the water. As a result, you lose bargaining power and are more likely to agree on a transaction that may not be very solid. Again, eliminate emotions from the home buying process!

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What tips would you like to add to make an offer to your home?

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