Many people wake up with this brilliant idea to save them time. Rather then going to physically look at the property, they canvas the entire MLS and offer 50% of asking price on every property in a city. Once they get an accepted contract or a counter offer they do the diligence and decide if they are willing to move forward or not.
This strategy does NOT work!!!
Agents and Sellers Can Tell your Motive
We have listed a couple of our wholesale deals in the MLS, and we got quite a few of these bulk offers. They all seemed the same, they force their escrow company, their earnest money deposit is always small, and the comments has a a couple escape clauses. Most of the time when getting a real offer the agent will call you and discuss some details of the property.
Inventory that is willing to Negotiate with a 50% price is CRAP
Anyone willing to “waste” their time on an offer this low is desperate. If you get an agent/seller willing to respond to this strategy they either have the property way overprice anyways, or they are working with something very difficult to resell.
You can’t Look at and Feel the Inventory
The more experienced you get in this business the more you will learn to trust your gut. If you don’t look at the property and the neighborhood it is very hard to get an idea and instinct on the property. Once you pick a farm, and look at 100’s of properties you will be able to determine the ARV (within 5-10%) in 15 minutes.
In closing, I am not advocating that you should never make a low offer. We do all the time. But use a method to your madness and make sure your agent personalizes the offer a little bit.