If you are a new real estate investor, you are probably trying to figure out how to make an offer so that sellers absolutely want to work with you. While it might seem complicated, there are some definite keys that you can keep in mind to successfully close your deals.
How to Make an Offer on a House on the Spot
First thing’s first here…you have GOT to learn to open your mouth in order to make an offer.
I get it, I really do.
When you make an offer in person with a seller, you need to make an offer verbally. This is important, because verbal offers and the foundation for every kind of relationship to ever exist, both in business and in life!
Verbal offers tell the seller that you are a serious real estate investor. You’re not just some hokey, know-nothing here! Show up and make it known that you know your stuff, have tracked the comps, and are there to do serious business.
When you make an offer verbally with a seller you officially begin the negotiation process!
I promise: it is NOT as scary as you think.
The seller is just another person trying to get their life situated.
If you know how to talk you will be able to learn all about why they need to sell just by having a conversation with them.
Here’s the deal: the majority of flippers and investors are always trying to make the lowest offer possible on their properties in order to maximize their profits. This is why I teach my students to make three deals (technically, 12, but three is the core).
As much as possible, you want to provide realistic solutions for both your own financial goals and your seller’s situation and goals.
How do you do that? I’m gonna tell you.
The first offer is a very low, embarrassingly low, cash offer. I know. I know. It’s feels gross and yuck, but let’s be frank here: you don’t want your money tied up in the house purchase. You run the numbers and determine your bare minimum offer, and make it as your cash offer.
Now, this offer is rarely accepted, and that’s okay. But, you are getting the ball rolling and, again, showing the seller that you are serious (If you want to know how to work out how much to offer, check out my video here).
You will also make two other offers, which is part of the process I teach in First Deal Done Fast; one is the high cash offer, which has a longer payout, and the other is a moderate cash offer with a shorter payout.
Basically, you want to make an offer on the house that appeals to the seller, but also works for your long term goals with the property.
It is a skill to verbally make an offer on a house. And, of course, absolutely necessary in order to get to buy the house!
Don’t worry, though. This is not a “binding contract” offer. It sets the foundation and gives you and the seller a jumping off point and somewhere to go from there.
So, you have got to practice making offers, and presenting yourself as a serious real estate investor.
You ARE a serious real estate investor. And, even if you don’t see it yet, start living it out in your interactions. Get your mindset right and get ready to do the work to achieve the results you want to see.
If you’re ready to do more to get your investments moving, make sure you get my FREE “10 Steps to Get Your First Deal.” This simple, highly achievable list will get you on the way to the success you desire!
Don’t lose sight of your goals! You can do this. Now, get to it.