hey Matt Theriault here at the gorilla
State have you ever driven by a property
for sale by owner or maybe you saw one
online or maybe you know overheard
someone talking about a property that
they were thinking about selling or a
conversation where they actually had a
property for sale I mean the type of
property that you would considered
buying if the price was right but you
didn't really want to go through the
hassle of you know calling a realtor yet
you were at a loss of how to make an
offer yourself and be certain that you
were going to get a good deal and you
know that moments passed by it slipped
by well I'm gonna show you in five
simple steps right now how to make an
offer on a house without a realtor and
get a good deal for yourself - on
today's episode of financial freedom
Friday alright so by the time that this
short video is complete you will be
armed with the knowledge of how to make
an offer on a house without a realtor so
you can more likely than not get a great
deal for yourself and quickly in case
this is the first time that we've met
first time we're crossing paths I've
worked for four years as a licensed
realtor where I represented buyers and
sellers in more than 50 transactions
where I received
rukiye of the Year honors and I
currently work now as a full-time real
estate investor and I have been for the
last twelve years where I've closed more
than a thousand transactions and I share
that with you not to brag but but rather
so that you know I have plenty of
experience in making offers without a
realtor it's how I make my living it's
how I feed my family all righty
and now anyone here watching this video
that would be interested in how to make
an offer on a house without a realtor
suggest that they think they can do a
better job than the Realtors that
they've done business with in the past
they think they're gonna save some money
on some commissions and likely they
think they're gonna do a better job or
get a better deal for themselves and I
think they're right and I have even
higher hopes for someone like that if
they keep just a few things in mind
while making their offer and we're going
to go over those in just a second and
something else probably worth mentioning
on the side I've trained quite a few
investors over the last decade inside of
the epic Pro Academy and our REI ACE
program and how to get their lowball
offers accepted by dealing directly
with sellers and I think whether you're
an investor looking for a deal or you
maybe you do something else during the
day and you're simply just shopping for
the next place that you're gonna call
home what I'm gonna share with you today
will serve you in either situation
alrighty so let's go over these three
big picture points real quickly and then
I'm gonna give you five small picture
specific steps to follow once you're
ready to actually make your offer okay
so three points big picture number one
begin with the end in mind what I mean
by that is are you looking for a
comfortable home to live in or are you
looking for an investment and this is
really important as they are two
different types of purchases that that
have their own nuances so before making
your offer decide which outcome is more
important to you a comfortable safe
place you're gonna call home or a
property where you put where that that's
gonna pay you back more than you put
into it the previous it's more of an
emotional decision when you're buying
the house it's more emotional the latter
that is an investments more of a
mathematical one and what I found is
that to don't really mix very well
meaning if your goal is to buy the
nicest home on the block for the lowest
price on the block the odds of it
happening are so against you it's
probably just not going to happen so
begin with the end in mind knowing what
you'd like at the end to be what you
want the outcome to be you want a nice
home or do you want a money-making
investment typically you can't get both
all right
so decide which one's more important
point number two know your seller and
what's important to them meaning will
you be making your offer to a listing
agent representing the seller or to the
seller directly because two scenarios
here the first is the seller has hired
an agent to represent them in the sale
of their property the second the sellers
decided to represent themselves in the
sale of their property so if you're
going to be presenting your offer
through the sellers agent know what's
important to the agent agents they want
their Commission and they want it
quickly so when presenting your offer
keeping the agent assured that they will
get their commission for certain and as
soon as possible that can go a really
long way in your negotiations and you're
actually a very common strategy a buyer
will use to to get their offer accepted
and save a little bit of money is to ask
the sellers agent to represent them as
well in addition to the seller and then
ask the agent to kick back some of the
buyers
agents Commission's to them right so the
agent will make a few more bucks and
because of this the agent is typically a
little bit more aggressive and getting
that offer accepted and both sides tend
to win all right so that is one way but
if you're presenting directly to a
seller there's no agent involved more
times than not you're dealing with
someone just like you someone that
either doesn't like Realtors or thinks
that they can do it better
and/or wouldn't mind saving some money
too by avoiding those realtor fees so
regardless whether there is a realtor
involved or not I recommend you fight
for the right to present your offer in
person with the seller the
decision-maker present yes even if they
have a realtor request that the realtor
set up a meeting between you and the
seller to present your offer in person
unless you do there's no way you're ever
gonna know what's important to the
seller and that's the foundation of
getting a real good deal for yourself
that's the foundation and don't
underestimate the miracles that can
happen when dealing face to face as
opposed to you know faxing in your offer
emailing it or FedExing it over because
if you're gonna take this on they can an
offer without a realtor don't get lazy I
mean you might as well just hire the
realtor then offer in person so point
number three align yourself with the
seller the biggest mistake I see people
make when making an offer and/or
negotiating what the sellers they take
in an adversarial role meaning its buyer
verse seller they're out to win and and
someone will and someone's going to lose
typically the person that is less
willing to walk away is the one that
loses but what I've found is by
searching for and creating a win-win
scenario you can frequently get more for
yourself than if you took on the seller
and just you know you're just focusing
on the lowest price you could get you
know everyone has their own opinion of
real estate values understand this
sellers think it's way up here buyers
think it's down here and in the middle
you've got you've got appraiser right
about here and then you got Realtors
here and then right here typically in
the middle that's where the market
determines the value so align yourself
with the seller and make the market the
bad guy or the adversary when you do
this two things happen first the seller
is gonna like you and being liked by the
seller is gonna go a long way and you're
getting what you want as well it's going
to keep any competition at a
disadvantage
the second thing it's much easier to
make the seller
think that they won even if you get
everything you wanted out of the deal
that's gonna become more clear as we go
through these five steps to making an
offer without a realtor and let's let's
do that now okay
so step one align yourself with the
seller I said that already
I know but that was more of a mindset
thing what I'm referring to right now is
more of a practical how do you make this
happen thing you see when you first
speak directly to the seller and there's
really so many ways that you can say
this but in an example of aligning
yourself with the seller it might sound
like this mrs. seller I really like your
house and I think I would like to buy it
and nothing would make me happier than
if we both get what we want out of this
transaction you get a fair price and I
get a nice property at the end of the
day but though the only thing that could
really get in the way is the market and
because the market is really what
determines of property's value and I
know you probably want to get as much as
you possibly can I would too if I were
you and all I want is just to make sure
that I don't overpay and lose money
that's fair isn't it you see how you
position the market is a bad guy that's
what's gonna get in the way but we're on
the same side to get to win-win right
cool
step two set expectations I like to end
the initial conversation as well as
every conversation really with what I
call a transition agreement a transition
agreement does very much as it states it
is to be used in every transition in
your interaction with the seller to set
expectations for what's next
indirectly actually does something more
important it increases your likability
as well as your trust ability so what's
the transition agreement what does that
sound like okay it sounds something like
this and there's a lot of ways that you
can say this to okay mister seller when
I come over I'd love for you to show me
around your property and point out
anything that you feel impacts the
property's value what I'm doing so I'm
just gonna take some notes and when
we're done I should have everything I
need to make an offer or not you know I
won't know for sure until you're done
showing me the property but what I can
promise is if at any point I don't feel
it's going to be something from me I'm
gonna let you know right away so I don't
waste your time is that fair great and
all I ask in return is they're the same
if anything doesn't feel right to you
will you please let me know so that I
don't waste my time okay
now within there is what's called a
release statement meaning you're giving
the seller a free and safe space to say
no to you and you want to do that
because if they feel comfortable telling
you no when you do get a yes
you'll know it's a true yes as opposed
to being you know brushed off all right
step three do some preliminary research
not a bunch just a little bit but before
arriving at the property to view it and
make your offer
pull the comparable sales in the area
take a drive around the neighborhood
look at what has sold look at what else
is for sale and if you're gonna make the
market the bad guy you know you want to
know what the market is really saying as
it pertains to the property that you
want to buy all right and then when you
arrive you're gonna do a little bit more
research to when you arrive to meet the
seller at the property arrive a few
minutes early and then do some more
research take a brief outdoor tour of
the property and take lots of notes take
lots of notes your list of notes it's
gonna be really valuable when making
your offer so and we're getting to that
and then it's all gonna come together
for you in just a minute
all right so step four start your tour
you know you knock on the door and the
seller answers and then you repeat the
transition agreement because there's a
transition and then ask the seller to
show you around and while touring the
property with a seller ask about
everything you see by asking about
potential problems
you make the sellers idea you make
everything that the sellers idea is not
yours you want to flush out as much
information as possible from the seller
during your property tour and because
that's gonna help you significantly when
making your offer for example when was
the last time the roof was in place or
replaced what needs to be fixed
what's out-of-date what can use some
maintenance have you had any bids on any
of these do you have any idea of how
much it's gonna cost to fix this or fix
that or update that you know one on one
of my favorite questions especially if
the seller is convinced their house is a
perfect house that needs no repairs
because you'll come across it is you
know mister seller or mister seller if
you were to stay another 10 years what's
the first three things that you would
replace see this is not the time to
insert your opinion you're just flushing
it out you're not just asking questions
and making note of all the answers and
the sellers answers to your then you're
just gonna add all those answers to your
existing notes you've got this long list
of notes they're gonna see why in just a
second so step 5
make your offer
so on your pad of paper where you were
taking all of your notes you should
already have an idea as to the
property's value based on your
preliminary research and after driving
the neighborhood and and viewing the
comparable sales and what you do is just
kind of take three to five of the
comparable sales that you feel we're
most like the property that you'd want
to buy and then just average them out
and that's gonna be really close to the
property's value start with that number
and then refer to your giant list of
notes mostly all the stuff that the
sellers shared with you and just kind of
back out what your your estimate of the
repair cost that everything that the
seller mentioned during your tour and
then subtract just a little bit more for
into incidentals and if this is going to
be an investment property for you this
is where you'd want to subtract the
profit that you want for yourself all
right so its market value less repairs
or incidentals and/or your profit and
then you'll have your offer number right
there okay so it's time to make your
offer what I like to refer to this offer
as a soft pass to test the waters with
your number and it might sound something
like this mrs. seller the current market
conditions have your property's value
right around $200,000 and based off what
you shared with me about the property's
condition and then considering
incidentals what you're saying is we're
right around a hundred and seventy
thousand dollars is that right and then
just be quiet and wait you see what
you've done in the soft passes you've
positioned to the market as the bad guy
and subtracted everything that the
seller shared with you about the
property and then you made the price the
sellers idea this positions everything
as the sellers idea and if it's their
idea they'll be more inclined to accept
as they feel like they won it was their
idea they won remember we're going for a
win-win outcome and through that
specific phrasing you indirectly gave
the seller the win while creating the
win for you - and if they accept you can
followup with something like great
should we make it official put it on
paper again be quiet and wait if the
seller doesn't like the number that you
came up with
then just react the question we ask the
question this way
okay so mrs. seller based off what the
market is saying the condition you
shared with me about the house and after
considering incidentals you know the
little unknowns that accompanies every
house what is the lowest price
you would take again be quiet and wait
and hear - with this phrasing the price
is the sellers idea whatever comes out
of their mouth is their idea and
whatever they respond with is a win for
them and if you find their response and
acceptable win for you your response
would be something like okay if I agreed
to that would we have a deal and if they
agreed great so should we make it
official should I put it on paper or if
you want it after they gave you their
number it never hurts to ask this okay
so is that your bottom line again
whatever it said it's the sellers idea
the seller wins and if their answer is
based off of the the markets opinion of
value and the condition of the property
it will be a fair price it's going to be
a win for you too and always end with is
that your bottom line you'll be amazed
how many times that simple question gets
you an additional reduction in price
alrighty so that's the basic approach
that I use when making an offer to every
seller these days and I'm more
aggressive with my numbers considering
I'm typically buying investment
properties but this approach it works
just as well when making an offer to
purchase a new home without a realtor so
who do you know that would be interested
in knowing how to make an offer on a
house without a realtor if you found
this helpful go ahead and share this
video with them and and what did you
notice what did you learn what questions
do you have
share them with me below in the comment
section I'm looking forward to reading
them I always do and I'm looking forward
to responding alrighty so I'll see you
next week on another episode of
financial freedom and Friday take care a
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