After days or even weeks of searching, you finally found the perfect house for you to flip, or buy and hold. Your phone calls to owners who werenâ€™t available, long drives to look for property, hundreds of direct mailings and your long search through MLS finally bore some fruits. This could be one of those real estate offers you have been waiting for.
To make things even better, you got an asking price that is below your Maximum Allowable Offer. The bad news is that you are not the only one who is interested in this once in a lifetime deal. There are several other real estate investors looking to acquire the same property. You present your first offer and it is quickly dismissed. Itâ€™s a bidding war and if you are not careful, you might just lose out.
So what exactly can you do to get your offer accepted?
5 Surprising Ways To Get Your Real Estate Offers Accepted
If you are the only one bidding on a piece of property, then you have an upper hand because you can influence the seller to meet your own needs. But, if there are dozens of other sellers looking to bid on the same house, you do not have that kind of luxury. Here are a few tips on how offer real estate deals that canâ€™t be turned down.
1. All Cash Offers
A finance offer is usually far less appealing than a cash offer if youâ€™re selling property after a rehab is complete. Finance offers are less popular because they deal with banks and financing contingencies which is a lot of work for most people. Cash offers are more attractive.
Cash offers are the best because there is a higher likelihood that theyÂ will not fall through. If you do not have money to flip houses, your cash offer can either be from a hard money guy or a private lender. Technically, you are financing the purchase but not the traditional way.
2. Offer Above Asking Price
The reason why there are so many bidders trying to purchase the house in the first place is because the listing price is so low. The best solution here would be to offer above the asking price. This sounds crazy but it sets you apart from all the other bidders.
Just ensure you have done your entire house flipping math to avoid breaking the 70% rule. To learn more about the 70% rule click here.
3. Offer A Fast Closing
Every seller wants to make a deal with someone who means business. Therefore, if you offer to close within two weeks or less, chances are they will want to do business with you. For every day that the seller has his house on the market, he is losing money so if you offer a super fast closing, they will pay more attention to your real estate offer.
Of course you have to be sure that you can be able to get your documentation, financing and inspection in place within a short period of time before you can suggest a fast closing to the seller.
4. Cater To Your Sellerâ€™s Needs
Try to find out as much as you can about the seller. Some sellers could be going through personal situations such as a divorce or a financial crisis. If thatâ€™s the case, they would be more eager to sell the property as soon as possible. They would be more interested in speed as compared to a high offer. The more you know about the seller the better you can make your real estate offers.
5. Waive The Inspection
There is a clause typical in any offer that states a sale will be if the house passes injection. If the house does not pass inspection, the buyer can opt out of the deal which means that seller will have to re-list the property all over again.
Waiving home inspection is a great way of getting a seller to take your real estate offer- the only thing you might lose is your offer deposit. If however, you find that you need to do some major repairs which might cost you a considerable amount of money, you can renegotiate the price or drop out of the deal all together. This is a more advanced strategy and may not be the best approach for beginners.