Do you make offers without visiting?

Question

Hey everyone,

Really excited to learn from the collective wisdom of the bigger pockets forum.

One of the maxims that I hear On BP is that you should expect about a 10% batting average (on average). That is to say you shouldn’t expect more than about a one in 10 offers to get accepted.

Assuming that this statistic holds true (and ignoring the exact success %), I’m curious as to whether people are visiting 10 properties before making 10 offers? Making 10 offers without seeing any properties and then visiting once an offer is accepted or a counter offer is received? Something else?

Relatively new to the forums so if that question has been addressed somewhere else would definitely appreciate a redirect!

Happy hunting,

Dan

Russell Brazil · Answer

I get about 90% of the properties I make offers on. Why would I waste my time striking out on 90% of offers?  I never make offers on properties sight unseen, nor would I accept one as a listing agent, unless it had no contingencies attached.

Frank Wong · Answer

Exactly!!  I never understood the I will make 50 offers and get 1 house strategy. Seriously that is your strategy??  I play to win and I make offers to get the house.  All that work waiting and searching and losing because you are trying to save nickels and dimes.

There is a difference between losing out on an offer because of serious competition and losing out an offer because that's the price you want.

Joe Villeneuve · Answer

Yes.  I've never understood where that 100/50/20/1 statement started.  Probably someone that couldn't tell time, or read a calendar.

John K. · Answer

I am very comfortable making blind offers and do it regularly. In fact made a very large offer on a package of homes, today.

I deal directly with the sellers, so my contingencies are anything that differs from what they told me on the phone, when I do inspect them.

I ask a ton of questions, but only those that pertain to the "big ticket" items.

Foundation

Roof

HVAC

Plumbing (Drains & Water Heater)

Electrical Issues

Mold Issues in bathroom/kitchens or anywhere elseIn my line of business, I would risk losing deals, waiting to schedule time to visit the property, before an offer. I also deal with the consumer that always wants a price, before anyone looks at it. So in many cases, I have no choice. I am also with @Russell Brazil and @Frank Wong. I have zero interest in writing low-ball offers, just to get told no. I have never figured out a strategy that makes me money, on NOT getting a deal. I don't need equity in the deal, to make money on it.

Larry Turowski · Answer

@Daniel Norber I pretty much agree with @Joe Villeneuve though I do make exceptions (one on a deal that was my best ever).  You're in a different situation.  You are new and visiting properties will be educational.  Pictures often don't tell the whole story.  See what condition they are in, keep track of them and see what they sell for.  This will help you to develop a better feel for what is a good deal.

Getting back to your your point, the idea is you analyze 100 properties, make offers on 10, and have one accepted.  I really don't know if that is statistically accurate, but it makes a point, doesn't it?

Chris Mason · Answer

And you're smart to do that as a listing agent, since as someone who only works with buyers I tell them all the time to just write the offer if you think you might want it, with all contingencies in place, and figure out if you actually want it or not after you know that it's yours if you do.

Fortunately for me, not all listing agents are smart. :)

I'm not a Realtor, but if I were then I'd probably make "just write a trash offer that'll get rejected, get it out of your system" part of my routine for nervous nelly FTHB types who are afraid to write, act like it's their virginity being lost, and want to play 50 questions for a property they don't even have in escrow yet.

Joe Villeneuve · Answer

First, I have no idea how many offers I make to get an accepted offer.  Don't really care.

Second, I never visit the property until I get an accepted offer.

Theresa Harris · Answer

If you are in a really hot market, I could possibly see putting in an offer sight unseen with the condition that you will see it; however, for most, I would never put in an offer without viewing the property or having someone I trust view it.

Melissa Barnard · Answer

Here in Texas, if you are not putting in blind offers, especially with small multi family then you are not going to be purchasing many properties! It is still a tough market so I would say in reference to that you need to have an abundance of offers so you have a better chance of one getting accepted.

Marc Winter · Answer

Make all offers subject to your inspection.  Someone once said:  "If you aren't embarrassed by your offer, it's too high."

That being said, you might want to tailor several (a couple, two, three) offers to the same seller.  For example: as-is all cash, seller financing, and your own (bank or hard money) financing.  Make the numbers work for you.

Don't be afraid to say "Next".

Do you make offers without visiting?

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