Need Quick Advice
Working with a Realtor, I finally got turned on to a listed property which I had determined to be listed for about $25k under the market. It's listed for $250k, and it comps out about $275k.
Nearly all of the others that I've come across have been priced over comps. I wanted to make a low offer on this, but when I drove out there, the house was being shown. I came to find out that the house already has one offer and these lookers today are supposed to be writing a second one.
The agent isn't going to be presenting these until tomorrow. Any ideas how I can handle this one, or what psychology to use? Should I still try to make a low offer? Would $250k (full price offer) be too close to the market to do a wholesale flip?
It's tough but possible to work this business using Realtors. They tend to suck up profits you could get, had you gotten there first. Sellers usually are encouraged by their Realtors--for obvious reasons--to take the cleanest, fastest offer.
If you make a simple cash offer, even "as is," you have a better chance than buyers who offer more but make it subject to contingencies, financing, inspections, etc. But be sure you really want it first! In hot markets sometimes you barely have time to think. As an investor, remember you're trying to work a wholesale deal but you're competing with retail buyers.
You might have better luck working the margins and shadows, looking for FSBO deals, pre-foreclosures, tax delinquent properties, etc. Lots of tips about that on this site!