One of the most challenging aspects of the property investment process is surely waiting for the offer you’ve made on a house to be accepted!
In a competitive market, there will be many quality properties that are sold quickly and you may have experienced disappointment, as the one you liked disappeared under your nose!
Here are 5 ways to raise your chances of having your offer accepted and minimising the stress at the same time –
- Make a cash offer
If you are able to offer the amount in cash, it means that the seller will not have to wait for your mortgage approval and loans to come though, making the selling process for them so much quicker. This is obviously an attractive prospect to every seller!
- Offer a fair price
Where deciding what amount to offer, one thing to avoid is setting the number too low as this can come across as an insult to the seller. You need to choose the price you are willing to pay for the property, based on what you understand to be a realistic and competitive price. This may mean offering a little above the asking price. Doing this can work in your favour and bring the deal to a swift conclusion in your favour.
- Take time to know your seller
When you are viewing a potential property to invest in, take a little time to get to know the seller and in what circumstances the sale is taking place. This knowledge and connection will stand you in good stead for making a good decision when setting the offer amount. If they are in a rush to sell, you could give them a cash offer. Or if they are waiting to find another property before they can sell, you can let them know that you’re in no rush either.
- Negotiate wisely
The biggest mistake that many buyers make is to jump in with a second offer if their first has been refused. If you wait, it can lead the seller to wonder if their offer is too high and so make them more open to your next offer. Patience is a virtue!
- Be led by your head
One of the things that you will learn as you go on in property investment is that there will be houses that you love but that you lose out on. This is just sometimes how it goes but it serves as a reminder to be ruled by your head rather than your heart. If you see a failure to complete on a property as a defeat then you will quickly become discouraged. Being led by emotion could also mean that you offer far above the asking price just to secure the property, which is not good business sense.
So, the next time you are considering making an offer on a property, remember these tips as you make your decisions.
We wish you all the best in your property endeavours!
For more advice, mentoring or training or property investment – get in touch with the team here.
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