How to Wholesale MLS Properties [My Perfect Offer Formula]

TL;DR

The person made a rookie mistake in negotiating a deal for an on-market property, offering too high and not realizing the true market value.

Transcript

Angela Hi how are you good how are you doing what's up I'm doing great so I actually do have a question today um I think I made a rookie mistake but maybe not like everything you're saying today is exactly what I'm going through on this deal so I went for the no um and the arv on this is 456. um I offered 280 they counter offered um then I went up ... Read More

Key Insights

• 🤝 Negotiating deals for on-market properties can be challenging, as the market value determines the true worth of the property.
• 👂 Realtors and sellers may be less motivated to provide substantial discounts on on-market properties due to listing agreements and potential commissions.
• 🧘 The longer a property sits on the market without offers, the more likely it is overpriced or has issues.
• 🤩 Probate mailers can be an effective strategy to find off-market deals, but consistency is key.

Questions & Answers

Q: What mistake did the person make in negotiating the deal?

The person made the mistake of offering too high for the on-market property, not considering the market value and the potential discount needed to make the deal attractive to cash buyers.

Q: How can the person get around the fact that the property is still listed?

It is suggested that the person either negotiate a lower price with the realtor or cancel the contract altogether if they believe it is not worth the price. They should communicate with the realtor and evaluate their options.

Q: How can the person determine the true market value of the property?

The person can use comping services like Prep Stream to analyze recently sold properties in the neighborhood. They should consider the duration the property has been on the market and any price reductions. A lower market value indicates the listed price is likely inflated.

Q: What should the person do if the cash buyer's offer is lower than their contract price?

If the cash buyer's offer is significantly lower than the contracted price, the person should consider renegotiating the contract or walking away from the deal. They should weigh the potential profit against the risk and make an informed decision.

Summary & Key Takeaways

• The person negotiated for an on-market property listed at $397, offering initially at $280 and eventually getting it under contract for $370.

• They sent it to a cash buyer who rejected the deal, highlighting the overpricing compared to the market value.

• The person is unsure how to proceed since the property is still listed, but they have it under contract and are trying to find a solution.