Oh no! My offer was declined, now

Who cares? It happens daily. If you're putting in a ton of offers it won't matter at all. And that is really the secret here...

I put in an offer on 2 bed 1 bath under 800 sqft home that is over 100 years old. It's a wreck. Doesn't need major work, but it needs tons of labor in little things. This guy bought it and made a vague attemt to fix it up before running out of money. In fact I bet he made more of a mess than anything. Everything he did is half-assed and will need redone. It's total crap.

I immediately put an offer in for $5k on this property which he refused. In my mind if I got lucky I would make $3K on this property. In all honesty I was figuring a couple grand at best. He wanted $15k. He's high! There's no way he will ever get that price. I was being generous at $5K.

Here's the kicker. While I put in that $5K offer he said in response, "That's $200 more than I paid for it". In my mind that was simply a reassurance of my estimation skills.

Who cares if your offer is declined. There are tons of other properties out there to buy and sell. You're looking for ropes to pull not to push. Remember you are the expert. I look at and move tons of properties every single week. There is no way that guy has a better skill of estimating property value than us. You put in an offer based on property condition, current market, and adding in what ever your time is worth. If it doesn't go through then it's not a deal. Go on to the next one.

It's my job to find my investors great deals. I don't want to waste their time with crap deals. I want to be known for always having the best properties at the best prices. It keeps my buyers calling me to check in.

If he was truly a motivated seller he would've countered or considered my offer. Instead he is going to hang on to it and look for another buyer. I wish him luck. What will ultimately happen is he will call back later on this fall wanting to sell it. He's out of money already so I know he will not make any progress on rehab. It will never pass for occupancy permit. Eventually he'll either need the cash or he'll get tired of watching the property depreciate from sitting. When he does come back, just out of spite, I'll offer $4K.

I thanked him for his time, handed him a few business cards and told him I pay referral fees, then went on to the next property.

Bottom line is if you offers are not getting rejected then you are not being aggressive.

Own Your Situation,
Ben