OfflineAs a real estate coach with PMI and a long time investor I have seen alot of success and alot of failure when making offers on property and get more complaints from students who are not effective at writing offers than anything else. I offer the following solution:
1. Use zillow to search for properties that are listed 20% or more below market value that either just hit the market or had a price reduction in the past 30 days. This gives us the highest likelihood that the property is still available, the seller is motivated and your not going to have to ask for an unrealistic discount to make the deal work.
2. Once you have located a property that fits the criteria of your buyers and has a >20% equity based on the asking price and the Zestimate, the next step is to use the MLS# zillow gives you to look up the listing agents phone number on www.realtor.com, and get an idea of what the competition is and what kinda rehab it needs.
3. The next step is to use the "see sales similar to" feature on zillow under the "nearby similar sales" comps half way down on the right side to determine the ARV, and use the "Calculating Maximum offer price 2 methods script attached to determine your max offer price.
4. Always submit a POF, photocopy of earnest money check and low comps to support your offer price with your contract.
5. draft offers with $1K or 1% earnest money with 14 days from offer acceptance to perform due diligence before earnest money is no longer refundable and 20 days to close.
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I like everything said here except I think the 20 days to close is too tight for most readers here. While quick closes are looked favorably upon by sellers, it may not be a realistic number for most. I would try to "feel out" the listing agent and see if they will give a guidance on the closing date needed. For example, I am working on a deal whereby I have the seller agreeing to a September 30th closing. More time is always a benefit to the buyer.
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