OfflineHey guys I just went to see a home that need a lot of work. The owner runs a company that purchases Bulk REO's and he's trying to liquidate all his old properties. I went to see the property with a contractor and the numbers dont work with the asking price so I'm going to submit a low ball offer along with all the repair numbers. So heres my question.
When your negotiating on a sale price, is your initial offer a formal offer with all the paperwork and contingencies, or do you go back and forth on the price and then write up the of once its accepted?
__________________
No Grind No Shine
Your initial offer should include everything that you want as if your offer will be accepted. If the offer is accepted, you really don't have a way to add new things. If the offer is rejected and countered, it is at this point that you go back and forth with seller and hammer out a deal. If the offer is just flat rejected, ask the seller why to see if there is a way you can make a deal or if coming to a deal is going to be a time waster.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Have everything you want into the first offer. You can't go back after an offer is accepted saying Hey I forgot to add this, the new price is $$$. You will loose your credibility real fast if this happens. Go over your figures 2 or 3 times. A note here. Take your repairs and add 25% for things to go wrong, as they usually will...Jan
Thank you guys. But I don't think you understood the question. What I am going to do is send a email with all the repair costs and how I came to the offer that I am going to make. In the email should I just state my asking price and once/if we can agree on a price, write up the contract. Or should my initial offer actually be a contract ? This is my first time submitting a offer.
No Grind No Shine
Your initial offer should be in contract form. Some people will accept the email, but in my opinion and experience a contract is the preferred method. You should include any contingencies that may apply and if they do not accept, you can always go back and renegotiate. Hope this helps!
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~
Thats the answer I was looking for, thanks !
No Grind No Shine
For what its worth coming from me since I havent done my first deal yet. I find that if I give them a verbal it gives me more leverage to find out where the SELLER and the potential agents head is at??? Im thinking is this seller flexable, is this agent trainable, are they this are they that??? But at the same time dont forget they will be working for you...like I said, havent done my fgirtst deal yet but Im close: But I have put in a few offers and this is what I have learned so far!!!!
Glass REI
Glassrealestateinvesting.com
The reason that an offer should be made in contract form is that there is no binding of parties except by written contract form for real estate in any state. Email messages, handshakes, verbal agreements can't stand up in court so they serve no purpose except for probing for information. Until it is in written contract form, you don't have a deal. Does that answer you question better?
Always Looking to Acquire Houses | Always Looking to Amaze Investors