New investors getting Stuck on list price

[Jordan Ray]

I wanted to create this post to help the newer investors in the forums. I work with tons of investors, both local and out of state and 1 very common problem I see that is holding new investors back from getting a deal is 1 simple thing... getting stuck on the list price. Remember that we make offers in real estate and if you want to buy a property but don't find that the numbers work at the list price. Don't pass on it right away. This is not Kroger where there is price tag to buy milk. You can't make an offer on Milk at Kroger (Unfortunately). Make an offer at numbers that make sense for your investment strategy. You never know what a seller is going to accept until you ask! 1 very common thing in Memphis is that almost ALL property is listed too high for numbers to make sense.. and if its listed at numbers that work, then it creates a multiple offer situation and investors end up paying more than they need to. Stop getting discouraged and changing markets. That where your agents boots on the ground expertise comes in to land you actual deals. I get excited when new investors finally figure this out because their first deal then becomes a matter of when. This is a numbers game. Make offers until you land a deal. Hope this helps and its time for all the new investors on the sidelines to get in your chosen market and start making offers!

[Bruce Woodruff]

Good advice! You would think that this would be obvious, but it's not (for newbies)

And don't be afraid to p*ss off the seller....on the last house I bought, I offered $60k less, and the sellers got irritated/insulted and refused to even counter. Fast forward a few months and guess what I got the property for? Yep.... that exact same price.

So, yes, offer what your budget allows and if the seller says no, just move on. But you have to be somewhat reasonable, meaning don't offer $100k on a $500k house :-)