I find it troubling that investors waste countless hours preparing and delivering offers only to have them quickly dismissed or flat out rejected without any feedback on why the rejection was necessary. Over the years of talking to lots of investors, I learned that those who have a higher ratio of accepted offers share certain traits and practices with their peers who find success in the offer presentation phase. I know you might be thinking that maybe they just offer more, and that’s simply not the case. Those who suffer lots of rejection also share similarities that point to their reasons for failure. Perhaps you think that one main reason those who suffer rejection have this issue is that they simply make more offers. In part there is truth to that, but the problem runs much deeper.
The offer process is certainly a scary thing for many people and with good reason. Nobody enjoys rejection on any level. Before you get too wrapped up in the emotion of rejection, first we need to understand that the seller is more nervous than you are!
Below are a couple tips to help you through the offer process:
Only make offers when you have been able to accurately determine the problem and motivation to sell.
Always be working with the decision maker, intermediaries only serve to get in the way and reduce the likelihood of effective communication in most cases
To buy creatively, avoid any property listed for sale by a Realtor or Wholesaler unless you can get them onboard with you working with the seller directly.
Never allow an offer to be blindly sent to a seller by your agent. First gain a verbal acceptance from your conversation with the seller and then ratify the agreement with the written offer.
Please understand that NO is part of the process, and a very important part at that. Go listen to episode 125 of the podcast for more details on the pendulum theory to better grasp this important concept.
If you must work with a Realtor, compensate them well to gain loyalty. We must put the needs of our team before our own needs to obtain the level of service we seek. I realize that I also said that Realtors can cause a breakdown in communication, however a quality agent can get you over the finish line if they are skilled at negotiation.