Im encountering multiple offers on houses that I’m interested at or above asking prices.
Ex.
asking 89k
ARV 134k
repairs 20k+
So I don’t see the logic there. My agent tells me that the listing agent says we need to be at or above asking price. These houses will not qualify for a conventional loan.
So I’m kinda stuck as to what to do.
I was wondering if giving a bigger EMD increases your chances of getting your offer accepted?
Has anyone done this?
Or is everyone still giving 1-3k EMD?
Also, what are you guys doing when this happens with the above situation?
What have you been doing to increase your odds of getting your offer accepted?
You need to really know your market. 134 - (89 + 20) leaves only $23K in POTENTIAL profit . Subtract closing costs, taxes, and other holding costs and that “deal” looks pretty thin.
I’m kinda in the same boat. I work a modestly affluent area and real deals are rare around here.
I’d only offer what makes good business sense and no more. Let someone else make the mistake. I’ve passed on a few deals and I’ve watched as they were rehabbed and have been sitting on the market for over a year.
In my area at least, if the property is listed with a real estate agent, it isn’t a deal that will make any money. You may need to do your own independent marketing to locate deals before they become known to the general public. That seems to be where the best deals are found.
However, to answer your original question. For any deal I decide to buy, I offer all cash, no contingencies at all, and quick settlemetn. I provide proof of funds right up front… If I make an offer, I’m actually ready willing, and able to buy at the price I offer.
jmd_forest
Thanks for the response.
your right. I’m wasting energy on properties that have very little spread.
So I will have to restructure the way I chase deals which seems obvious but I guess when your starting out you find it hard where to begin.