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Letitia Patterson-Investor Agent

Your Best Source for Metro Detroit Investment Property - 248-506-9426

By Letitia Patterson | Agent in Detroit, MI

Can't Get Your Offer Accepted?? Find Out Why

                                                                                 Request a Free List of Investment Properties


Using the List Price to Determine Your Offer? Bad Move- Here's Why


    The one aspect of Real Estate Investing that can't be controlled or measured or even adequately anticipated is Desire.

    Why someone sells, why we buy, what prompts one deal to close and another to be rejected is the unknown factor.


   So, when thinking of how much to offer on one property versus another, a big mistake investors make is basing their offer price on the listed price of the home.


   We don't know one seller's situation over another, so we need a better method to use when making good offers.


   Now, in an investor's mind, it wouldn't matter if an item was $2- we would still start at $.50 and move up from there. It's just the way we are.

                                                       
   However, in a widely competitive market, this strategy will keep you locked out of closing on a property and getting on the road quickly to collecting great rental income.


So, here's a few tips when determining offer price:

1. Look at what similar homes have SOLD for in the past 3-6 months


DO NOT look at what's on the market because that's not the most accurate gauge of what people will really reach into their pockets and actually pay.  We only care about Sold statistics- this is the market communicating to you about the real value of an investment property.


2. Look at the price history of the property

If a home has been on the market for 1 day, making an offer at half the price will not fly.  At all :-(.

However, if you can see the price history of it and how long the seller's been trying to move it, you may have an advantage there to solve a huge problem for them quickly.


3. Realize that Lower Prices = More Demand (AKA More Competition)

4 or 5 years ago, homes weren't priced as low as they are now. As they become more affordable, not only are you fighting other investors, you also fight Homeowners, who are making ONE purchase, ONE time and will outbid you by several thousand dollars to get that home.

   So, if the price is below or at market value- pay what they're asking.....GASP!

   *Did she just say pay what they're asking!??!?  BLASPHEMY!*


   Hear me out: a few years ago home prices would have been double or triple today's pricing.   Sometimes Investors will stall about a few hundred dollars when the price has been dropped by thousands due to the down market.

 If you're constantly getting beat on price, remove all arguments- pay what they're asking or a little above.   BEAT the competition. Get your deals and get going!!

                                                          
                                   

Need help? Contact us immediately, it's what we love to do!


Good Luck and Happy Investing!


Letitia Patterson is a licensed Realtor in Michigan. She has sold hundreds of Investment Properties to Investors from 5 continents and loves helping them invest wisely for immediate cash-flow, as well as long-term gain.

To Request a Free List of Investment Homes, click here:

http://www.detroitcashdeals.com/forms/index.cfm?id=101395

Letitia N. Patterson
(la-tee-sha)

Office: 248-905-1531
Cell: 248 506-9426
Email: myrealestateteam1@gmail.com

Comments

By Stephanie Leon PA 786-574-3928,  Tue Oct 2 2012, 22:25
Great post thanks for sharing.

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