Real estate investing brings excellent opportunities as this profession offers many wealth-building strategies and investing techniques to investors and professionals. As more aspirants decide to join the real estate offer investing profession, the competition becomes more challenging in the bidding wars and the housing market. One of the best ways to win more deals in a highly competitive market is to set the best offer for the subject property.
Making a competitive offer is a task that requires research, knowledge, and skills. Further, you must also be responsive to the circumstances of a potential buyer. Some people are interested in buying a house, but they cannot outrightly pay in cash. Other buyers have personalized demands in terms of design and structure. As your potential buyer’s needs vary from a case to case basis, you need to be flexible in engaging these demands. However, the best transactions and contracts start first in getting your buyer’s “yes” to your offer. This amplifies the imperative of having the skill to set the right offer for a property. Here are some quick tips on how you can make the best real estate offer:
1- Do a property valuation and research
A property valuation is an assessment of the subject property based on its condition, location, year built, and other necessary details. It is vital to have a valuation of the property to set its estimated worth. Also, the property valuation must be coupled with research. You may use comparative market analysis to calculate the property’s value based on recently-sold comparables. You may now search through index home instead of doing it physically. See how we analyze properties with confidence at Fast CMA by visiting our tools here.
2-Find an investor friendly-agent
Business success can be better achieved if you will associate yourself with the right network. When you have an investor-friendly agent, it is easier to win more deals. An investor-friendly agent is a person who has experience in the real estate market and helps you to have a good return on investment. The agent is also knowledgeable about the local market and is willing to help you outsource off-market leads with high investment potential. An investor-friendly agent is an excellent asset in looking for deals and in setting the best offer. When your agent has an encouraging mindset, that positive attitude can better complement your investing strategies. A better return on investment is more realistic and achievable if you and your agent can work hand-in-hand together.
3-Observe the rules and close the deal
In making a competitive offer, there are rules that you need to observe and follow to set the best price. These formulas and guidelines help you assess your return on investment. Some of the accepted and commonly-used rules in making an offer are 70% rule for flipping houses and the 1% rule for the buy and hold strategy. You may watch an illustration of the application of these rules here.
The observed investing strategies and rules can guide you in setting the maximum price you must consider in paying or offering a property. In this way, you can leverage your real estate investing and select the right offer. Improving your strategies in making the best offer is important as it can either make or break your expected profit. As you become an expert in setting the right offer, you can maximize your return on investment and avoid getting at a loss. You may check our marketplace if you need the services of association, coaches, funding, vendors, and other real estate professionals. When you master the skill of setting the best offer for your property, you can definitely have more chances of winning exciting deals!
Credits: Becky Kromminga is Real Estate IQ’s Director of Growth for Houston Operations. Becky loves to apply her skills as a former Math Teacher and Educational Researcher to Real Estate Investing. She has notable experiences with different real estate investing strategies such as buy and hold, wholesaling, flipping, and subject-to properties. She is a graduate of MA Mathematics and is actively involved in the administration processes of Real Estate IQ.
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.