How To Get Your Offers Accepted To Buy Properties

One of the biggest challenges for real estate investors is to make offers that get accepted. When investing in real estate, buying properties is the basic foundation of any real estate investing business.
Unless you buy properties, you cannot make any money.
Here are a few tips on how to make sure your offers get accepted.

The biggest challenge facing most real estate investors is making acceptable offers. When investing in real estate, buying properties is the basic foundation of any real estate investing business.

Unless you buy properties, you cannot make any money.

Here is how to make offers that get accepted.

The offer you make depends on the type of property you are buying.
1) Buying from motivated sellers
It is important to have the following pieces of information if you buy houses from motivated sellers:

a) Market Value
Be sure to get the fair market value conservatively when the house is in perfect condition. You cannot make any offer until you have this information.

b) Mortgage balance
Before you can make an offer, you must know the mortgage balance. A seller who is not willing to disclose this information is not motivated enough. Move on to a motivated seller.

The mortgage balance must allow you to buy the house and still leave you with a profit. You must own it free and clear and make a profit.

c) Repairs needed
It is possible to estimate repair costs with the information provided by the seller.

You must know the repair estimates before you can make an offer. Of course I prefer to see the house myself.

d) Asking price
Taking into account the 3 pieces of information above, if the owner is asking for too much, you might never make it work.

The market value, mortgage balance and repairs must be taken into account in a good asking price. You can then make an offer based on the asking price. If at all the mortgage balance and repairs allow you to make an offer that can leave you with a profit, by all means do it.

Even though it is necessary to consider the seller's needs, no offer can be too low. If they face foreclosure, their asking price might be to just walk away from the property, or they might need some moving cash.

It does not make sense to make an offer when the mortgage balance is too high compared to the property value. Move on to the next deal.

When all is said and done, the only bad offer is the one you have not made. Always make all the offers that make sense to you. You'll be surprised how many get accepted.

2) Buying foreclosed properties
The asking price and repairs are the only important considerations to make in this case. The bank is trying to offload their inventory and are willing to negotiate.

Most REOs are listed below market value. Depending on your exit strategy, if the numbers are close to making sense, by all means make an offer.

Remember to always make a lower offer than the asking price.

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