I try to buy a lot of houses and every so often I think I am pretty close and am disappointed to hear the dreaded No from a seller. Sometimes they are less polite and use words like: “cheap”, “crazy”, “wasting my time”, etc.
Here are some of the things I remind myself when I hear no:
This is a Numbers Game
You are not going to buy every house you offer on. But if you stay in the game long enough and make enough offers you will eventually get to a Yes.
There is Lots of Inventory
The market is big. There are a lot of distressed sellers right now. Don’t worry about the deals you miss, focus on the things you can control.
No can be Temporary
The percentage of escrows that don’t make it to the finish line is substantial. If the Seller picks another offer don’t give up on the property.
Investors are Required
Owner occupants cannot buy most of the stuff I go after. My job of revitalizing a neighborhood is required and should be profitable.
Be Relentless
Persistence pays. Keep at it. You will hit slumps, but you can only get out of them if you don’t give up.
The process of buying should be a math equation. If you normally get 20% of what you offer on and you need to buy 5 properties a month you need to make at least 25 offers on properties in a given month.
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Amen to this being a numbers game!
I hate when my offer is just short of what they want by a small amount. It’s hard and tempting to budge, but we can’t do it. A better deal will come along.
Yeah..if you are not hearing No or expletive and then No – You are offering too much.
You are right about the “No can be temporary”. Lots of offers falling through down here. I almost like when I hear if anything comes up, “I will immediately go to yours”. I just heard this last month, but I still missed one..Someone came in with a higher bid in between option period. Like Danny, I was frustrated – I am sure I missed it by just a thousand or so.
Next…
Steve,
All your points are right on. I think the one that most resonates with me is to “be relentless”. I’ve noticed that over the past 6 months the word about my market has spread.
I had a nice niche before – short sales. Most investors and homebuyers preferred not to wait them out, but not any more.
Good to see that even investors doing larger volume are facing the same issues.
Best,
AG
this principle can be applied to every thing that is just hard in life. This is what makes real estate beautiful,by being tenacious and relentless.
Thanks for this great advice!
So true. It’s definitely worth it to be thick-skinned and willing to hold out for those really great deals that will promise either a great profit-on-the-flip, or will produce a positive cash flow from rent. If the selling price won’t give you either, it’s just not worth it.