How To Make An Offer On A Property

Filed under: Real Estate — Admin @ 4:28 pm, September 26, 2022.

Submitted by: Jack Bosch

In the last ten years, I ve done over 5,000 real estate deals. So I guess you could say, I ve made a few offers in my time. You might think the only important thing about an offer is the amount of money involved. Yes, the dollar amount is often critical, but there are several other factors most people don t take into account that can mean the difference between a sale and a rejection.

After you ve made initial contact with a potential seller and they ve indicated their interest in possibly selling their property, it s time to make your offer. What should it include?

First, an offer letter should always look professional and be well written with proper grammar, spelling and punctuation. Since, in most cases, you might never have met the potential seller in person, the only way the seller can gauge your credibility is through your communication. A potential buyer is more likely to consider your offer if your letter is respectful, brief and clear.

The most important things to be clear about are the dollar amounts involved. There are three figures you MUST spell out clearly:

1)The total amount you are offering for the property

2)The amount of that total that will be put toward any outstanding tax liens (if this is relevant)

[youtube]http://www.youtube.com/watch?v=DvX9F0wMYI8[/youtube]

3)And finally the NET AMOUNT that the seller will walk away with.

It s very important you spell all this out as clearly and directly as possible, especially if there are tax liens on the property. You don t want to give the seller the impression that they are going to walk away with more cash than they really are. This will lead to frustration and potential legal hassles down the road if the seller threatens to pull out of the contract.

The legally binding part of your offer the actual contract is called a Sale Agreement. Personally, I like to refer to this in my offer to a seller as a Purchase Agreement . It s the same thing, but calling it a Purchase Agreement helps reduce any confusion the seller might have. (I ve gotten feed back over the years from sellers who thought they were being asked to buy something instead of sell something when I sent them a Sale Agreement. ) So now I just call it a Purchase Agreement.

There are four items a Purchase Agreement MUST include for it to be legally valid:

1)Who are the parties involved in the transaction? The buyer and seller (grantor and grantee) need to be named.

2)The consideration. (This is just a fancy way of saying price.)

3)The subject of the contract what is the specific property that s being exchanged?

4)The signature of both parties, which indicates legal consent.

Legally, those are the four things which are required for the Purchase Agreement to be a valid contract. However, there are two more items you should also consider including:

1)The date of close. The deal will be done on or before whatever date you set here. This gives everyone involved a sense of the timeline and allows you to keep the pressure on so everyone knows there s a target.

2)An expiration date. Again, this is optional, but it gives the seller one more reason to act quickly. It s always to our advantage as real estate investors to get deals done quickly. The sooner we buy, the sooner we sell. Adding an expiration date indicates your offer will be retracted if it s not accepted within a certain time period.

Keep it as simple as possible. A Purchase Agreement does not have to be pages and pages of legal text. Remember, the whole idea is that we re making it as easy as possible for the seller to say yes. The Purchase Agreement can fit on a single page.

I explore this simple technique for reaching out to buyers much more in depth in my real estate investing course which explains not only how to make deals, but exactly how to find these crucial potential buyers and purchase property for literally pennies on the dollar. Find all this at: www.landprofitgenerator.com.

Jack Bosch has revealed where to find the best investment property just for you at www.landforpennies.com. You can get a free preview of Jack Bosch s innovative course by visiting www.jackbosch.com

About the Author: Jack Bosch began investing in real estate in 1999. Along the way he discovered a secret system of buying land for literally pennies on the dollar and reselling the property for thousands more. Since his first transaction he has personally bought and sold over 5000 properties using his fine tuned system. Jack to this day still invests and profits from real estate, however now he also offers his secret strategy of buying and selling real estate for huge profits to You!To learn more go to

LandForPennies.com

&

SecretLandProfits.com

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