Does The Asking Price on a Property Matter when Wholesaling Houses?

I was just thinking about a deal that I recently put together this past Friday and thought it may be good advice for you when wholesaling houses.  A seller called on a bandit sign that one of my guys put out and my new acquisitions manager answered the phone and sent the details to me through Google docs…

Quick tip: If you are using Virtual Assistants to answer your calls then you gotta use Google docs or something similar to stay up to date on your phone records and call details. It’s works like a charm.

Anyway, after Kathy input the information in Google docs I received the information and called the seller back in order to set up an appointment to see the house. On the Google doc Kathy mentioned the property was a $60,000 property if it was in perfect condition, so I knew what type of area this property was in. She also mentioned that the property needed a lot of work.

So I ended up contacting the seller and asking him a few more questions. Turns out, he inherited the property after his father died and he just wanted to dump it. I asked him what his best price was and he told me $12,000. I immediately knew I had a deal.

Being a seasoned investor I wanted to see how far down he was willing to go on price and so I asked him if the $12,000 was the best he could do on price, and he said no. He told me that if I offered him $8000 he would take the deal. So I set up the appointment.

While at the property I noticed that it needed more work than I had anticipated so I offered him $3000 for the house and he took it. I literally paid $3000 for a $60,000 house. Not bad. Granted, it needs $20,000 in work, but it is still a great deal.

Quick note: I used the same strategies to pick up 3 free properties this year so far as well.

The moral of the story is, the asking price doesn’t matter. If the seller is truly motivated, whether it is a bank or just a plain ol’ motivated seller they will take your offer if they really want to sell. You determine the price and if the offer is good for them they will take your offer.

In the example above the seller dropped the price by $9000 without blinking an eye. This was because he was motivated. I honestly think he would have taken less. But I didn’t want to push it.

Remember, when you are looking for deals on the MLS or through marketing, keep in mind that the price doesn’t matter. If you make an offer and the seller doesn’t accept it.. Fine! Just move on. If the seller does accept it then that’s great for you.

Leave a comment below and let me know what you’re thinking.

10 thoughts on “Does The Asking Price on a Property Matter when Wholesaling Houses?

  1. jamel thanks, i’m fixing to start making offers on houses listed in the MLS,
    and i was wondering about how low to offer. You answered the question
    motivation, motivation, motivation of the seller.

    Ray Wilson

  2. That’s a great deal. It never hurts to ask a couple of times, if that is the best they can do. It’s amazing just how quickly they will come down.

  3. Well thats great how a bandit sign can bring a good deal, im an over the road truck driver,
    and doing those type of deals can keep me home with my family.

  4. Thanks Jamel. This was very helpful! Recently, I received a lead similar to this one. The property is worth about 45K and is a fixer upper. I wasn’t sure how low I could possibly offer. I was considering below $10,000. It does depend how much the seller is motivated.

  5. I wish I could find those motivated people. I seem to just miss them.
    I lost all my life savings in a marina with 44 other people and the states of Florida and California have literally done nothing to get our money back. Now the man is doing the same in Maryland. If I could connect them the state of Florida would finally do something but they don’t really care when they have the info. Can I sue the state and win since they went past the statue of limitations they said…crazy..isn’t that something the state makes up…so why would it be a problem for them when they are doing the investigation?
    In the meantime I need to find properties I can get under $5000 or I will end up losing my home soon. Anyone in Florida know how to do this and want to go in?

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