When making an offer

When you first meet a potential seller how do you go about making your first offer? What methods do you use to get them to or around the price you want to purchase thier house?

Thank you

I wouldn’t be in their house if I know they are not open to accepting my offer. If we’re few thousands off, thats fine I can talk them into it.

Just tell them what your offer is, if they need convincing show them why you cannot pay more. Explain the cost of buying, cost of selling, cost of waiting for a buyer, cost of fixing, and you still need to make some profit. Explain to them that their other option is to list it and wait on it few months hopefully it will sell, but if it is in bad condition?

If they don’t like it, they can keep the house. Do they really want to keep the house?

After asking some digging questions into why they’re selling, why they called you, etc. I often will ask them what they’re looking to get, then I can work from there, if it’s within reason or not. And like Fadi said, some sort of expectation setting prior to looking at the house is needed.

I agree with fadi, you want to give the seller a ball park offer over the phone to make sure you are both on the same page. Then once you see the house you can adjust your offer.

After first meeting with the seller, ask for the legal documents of the property. Ask for the payment terms, condition of the property, any dispute over the property, maintenance cost, banks dues, due taxes etc. After inquiring, ask for the rates instead of putting your value first. Try the local market and compare the rates.

I do a little research first to find out whats going on. I find out how much they owe on it, what their motivation is and the timeframe that they have to move it.

if it’s bank held, i try to find out how long its been foreclosed and the type of entity that foreclosed on it.

last, I know exactly how much I am willing to pay in total for the house. if I can’t get it for that price or less, I pass

awesome advice! thank you everyone