You know, it’s utter nonsense to submit offers to sellers and just hoping they’ll accept. Sure, I used to do that; and I’d sit there by the mailbox with my fingers crossed, praying the mailman had more than bills and junk mail for me today. And every now and then one of those offers would show up all signed off and I’d be the happiest knucklehead on the block.
Why was I a knucklehead? Because trying to buy houses by sending out offers and hoping to get lucky is just about the worst way to buy real estate. My suggestion? Stop doing that!
I buy dozens of properties every year, make some real killer deals, and almost NEVER submit an offer to the seller. My advise to you today is to get your head out of the “make an offer” mentality entirely, and let’s move onto something that actually works.
So what do we do instead?
(Hold onto your hats because here comes the paradigm shift) We don’t make offers; we make suggestions. Suggestions? Yep, nothing more than suggestions. But here’s the key: We make them in the company of the seller, usually at his or her kitchen table, and we do so in such a way that it’s never about anything but helpful problem solving.
So, when every other investor in town is offering them a couple thousand dollars to walk, I ask, “What are you looking to do here today, and how can I help you make that happen?” And as a result, I never offer anything. Instead, we reach agreements. See the diff?
I don’t come to the table with a number demanding my terms be met or else. That’s just plain dumb. Instead, we sit down, and I do a whole lot of listening. Once I have an idea about what they’re hoping to do, I team up with them and together we work out a plan that solves their problems.
Often, the plan turns out to be completely different from the one they thought they needed, but as long as it gets them to where they to be, it’s a plan that works.
And what do we do next?
We write it all up on a purchase and sale agreement that is completely acceptable to all parties before the pen ever hits the page. Do you see anyone offering anything here? Heck no! I don’t make offers; I make suggestions.
Sometimes, when there’s no way to meet with a seller because he’s out of the area or something, I’m tempted to just write up an offer and get it out into the mail. But I don’t. Instead, I get him on the telephone and do all the same sort of things we’d be doing in person if he were available.
And, hopefully, at some point sooner than later, we’ve got things worked out and that pre-approved agreement is what goes out into the overnight mail. Stop making offers and start making money. It’s how pros negotiate, and that’s the way you should, too.