Investor strategy ?! How are home under contracts after 1-2 days being listed

[Kevin W.]

Good morning BB Community!

I have been seeing homes being posted and then becoming pending or under contract 1-2 days later...

So I was wondering if it's a common strategy for people to submit an offer to a house without even visiting it...once the offer is accepted, THEN they go to look at it... that way they get their "foot in the door" first (other home buyers see this home being under contract or pending therefore, they will most likely not pursue it further).

And if they don't like the house after examination... they then walk away or request to lower their offer price? 

[Doug Smith]

Hi Kevin, I know I'm going to get crucified from the peanut gallery of keyboard know-it-alls, but I have an interesting and different perspective on making and receiving offers on properties. It's the opposite in many ways from what is preached on here and what the normal SOP is in the industry. I have to take my lender hat off and talk about the other side of our business, which my wife runs. She, herself, has flipped scores of houses and even constructed them from the ground up...she has a formal degree in doing that and has had a lot of success. She's also a licensed real estate agent and lists properties for other investors in Florida that value her experience, expertise, and input. At any one given time, she has 20-25 listings. That means her phone rings off the hook with investors and wholesalers spouting the same scripts. (Right now we're sitting with our laptops open drinking coffee...I can hear her side of the conversations) You would be shocked how quickly her phone rings every time she uploads something to the MLS. Just some takeaways from hearing her work that I know she wished investors would do...

1) Be Honest: The vast majority of callers try to be manipulative. For instance, her sellers don't want the deals to be daisy-chained, so they won't accept assignable contracts. A lot of people fib, try to slide it in, and think she's too stupid to catch it. Just be a straight shooter in a polite manner. It will go a long way. 

2) Be Polite and Humble: Some of the arrogant jerks that call her blow my mind. Do you think when there are multiple offers on a property they are going to push your deal if you're a jerk? All offers are presented, but if you give the impression that you're going to be slimy and difficult, that get's back to the seller. Rudeness is a deal killer for you. 

3) Identify Yourself: Nearly everyone (no exaggeration) that calls or texts don't say who they are. Are you a buyer or an agent? She's also attractive and get's a lot of creepers that call for other reasons. Be a pro, which leads me to...

4) Be professional. It goes a long way. Keep in mind they might have a lot more property and, if you are a pleasure to deal with, they might call you when they get another one that meets your criteria. 

5) Get a Different Script: For the love of God, don't use the same scripts that the gurus are using. She's got them memorized by now. It's kind of a turn off. Be a pro and have a conversation. If you are polite, friendly, and respectful, she's be happy to answer legit questions. 

6) Do Your Own Homework: I know you don't want to waste your time on a property, but neither does the seller. Keep in mind, they are likely getting tons of calls. You asking them to do your analysis for you is not going to endear them to you. Legit questions that makes sense are fine, but silly questions that show that you haven't read the property description won't help your case to be the winning offer. 

7) Do Your Due Diligence First: If you're dealing with a pro on the other side, there is no way they are going to recommend the seller accept an offer if they don't think you've already visited the property and done some homework. Trust me, you're not the only person that is blindly submitting lowball offers sight-unseen. For a pro, this isn't their first rodeo. Make them feel good about how serious you are by making sure they understand that your offer came with some thought. 

Keep in mind, this is coming from the perspective of a really good, professional agent that not only understands things from an investor perspective, but also does it herself. I'm going to get shredded for this post, but it's honest and it comes from hearing call, after call, after call. If you look that the number of people here on BP and then consider that there are exponentially more investors out there, if its a good property that's priced right, you're not even close to being the only call that the seller has gotten. I truly hope this perspective helps. Good luck in your practice.