Making an offer

[Wilson Mui]

If I understand correctly, some members advise offering a maximum of 70% of the ARV minus the repair costs for a property. This is usually a very steep discount to the asking price. Since most offers will probably get turned down, does it make sense to ask the seller if first he or she would even consider such a price cut before even looking at the property and getting it inspected?

[Jennifer Lee]

Im a small investor, I buy off MLS....I just stick to my guns.
Even with brokers. They don't like it, commission is minimal. But hey it is money that fell into their lap. I did all the work, and they know I only call if I'm buying.

I buy homes that have been on the market a long time and need TLC.
I bring my contractor on the first viewing. And he is pretty good with the numbers and problems.
And I work backwards from there. Make my initial offer usually 70-80% of asking, and throw in contingent to inspection.
Something always comes up. And we start knocking price down.

Then throw in ALL CASH....and/or 30 day close or less.....they usually bite.
By then the both broker wants it to happen bc they are sick of the listing and I'm usually the only buyer.

Hope that helps