Make An Offer On A Property (Day 17)
The only way to practice making offers on properties is to go out there and actually make an offer on a property.
Hey and welcome to the 30 day property journey day. Over the next 30 days I’m taking you through a bunch of different activities – some easy some a little bit more stressful, that are going to help you become more confident in your investment journey and help you move closer towards your goal of buying your first property.
Today’s activity is actually making an offer on a property whether you’re actually ready to buy a property, or whether you want to buy a property or not.
This is something that I have done in the past and that has really really boosted my confidence when it comes to looking at properties, dealing with real estate agents and making offers on properties.
This activity is a bit left field, it’s a bit different to what you probably expected from this 30 day property journey and that’s to go ahead and make an offer on property!
A lot of people freak out and they say what do you mean make an offer on a property? This just sounds crazy, why would you go ahead and do that?
But the reasoning behind this is that making an offer on a property and doing some negotiation with the real estate agent is going to make you so much more prepared for when it comes time to making an offer on a property that you actually want to buy.
What Waking Up Early And Property Have In Common
A lot of people have the best intentions of getting up early but when your alarm goes off you hit snooze button and you end up staying in bed until you have pressed the snooze button for an hour. You haven’t gotten up early and it’s now too late to go and do your exercise or whatever it is you wanted to achieve that morning.
One of the best strategies that I’ve learned for waking up early in the morning (don’t worry I’m going to tie this in) is that rather than just setting your alarm and hoping for the best is actually doing an activity that helps you get up in the morning by default.
What you do is in the afternoon or in the night lie down in bed pretending you’re going to bed and set your alarm, but set it to go off in 1-2 minutes time. Pretend you’re going to sleep (hop under the covers and everything.) Then when the alarm goes off practice getting up and turning that alarm off and walking out of the room.
Then go back hop in your bed set your alarm for 1-2 minutes time and do it all over again. Do that multiple times so when it comes time in the morning the alarm goes off you’re in that habit getting up turning it off and walking out of the room
It sounds strange but it totally works and we want to apply the same thing to making an offer on the property.
Taking The Emotion Out Of Making An Offer
Often people get so emotional when it comes to buying a property and then they make silly decisions, silly financial decisions. They pay too much for a property or they buy a property that’s not right for them and so by doing this practice of negotiating by being emotionally cool and what we’re doing is the same that as when we’re lying in bed, getting up, turning the alarm off and walking out of the room, we’re practicing a non emotional response to making an offer on a property, so how do we go about and do this, well I find the easiest way to do it is to simply go to realestate.com.au and just simply find a property that you want to make an offer on or maybe you don´t want to buy it but a property that you think is fine,
Now I just want to put a disclaimer out there that you do need to be careful in certain states like Queensland, where an offer is considered legal as soon as it’s accepted in writing.
Basically go find a property, find it, do your research l like I teach how to do it on property plus or I’ve taught you how to do in the essential guide to buying your first property, do your research find a property that looks really good and make an offer, make a low ball offer maybe an offer that’s below the asking price, you can simply do it through realstate.com.au or through the forms that they have there and you can say “look I’m really interested in this property I’d like to make an offer on this property for x amount of dollars, because that really suits me financially”, then if the real state agent comes back chances are they aren’t going to ever accept the ofer at right, specialy if it’s a low ball offer, they come back to negotiate, you can say to them “look I really need to do the finances on this and consider it and I’ll get back you” and you can get back to them with a negotiated offer or you can just leave it at that, email them and say “look I’ve reviewed the details and I’m not going to push you this property any further” and so I used to do this when I was a lot younger, trying to organize financing deals all this crazy sort of stuff because I didn’t have any money and I just started making offers on properties that I couldn’t really afford just to see what they would take and whether I could actually work out a deal, where I could end up buying a property. I remember making offers on 800 thousand dollars properties boxing units in regional areas, smaller houses a whole range of different things making offers to see if anyone would accept my low ball offers and then if they did I would try and scramble find a way to make it work but if I couldn’t find a way to make it work I would withdraw my offer and just say that the finance didn’t line up on the property, but most times,pretty much every time I got rejected in some sort of way but it just really built my confidence in dealing with real estate agents, you realize that real estate agents aren’t trolls on a bridge that won’t let you pass they’re people with a goal and that goal is to sell the property and whether an offer from you is the way they want to sell it or not you find out that really their big goal is to get the buyer, you know to get the property sold so they can get the commission, once you start dealing with real estate agents and realising that they aren’t trolls on a bridge I just finally became so much more respectful of agents and become so much confident around them, so when it comes time to actually deal with real estate agents when you’re looking to buying a property, seriously, then making an offer is so much easier if it’s not your first time to make an offer, ideally if you’re going to make a real offer you probably want to get access to the contract of sale first so this is another activity you can do, you’re too scared to make an offer simply ask for the contract of sale, again you can do thisthrough realestate.com.au, you can call the real state agent, you can email them, howeverr you want to do it just say “I’m interested in this property wonder if I can get a copy of the contract of sale” and they can send that through to you and you can begin reviewing it, this is another way to do, to making an offer without actually making an offer but you get used to dealing with real estate agents, asking for things, asking questions,etc. while you’re at it and you’re asking for the contract for sale why not ask some more question about the property, what do you expect this property will win for? where are the opportunities to add value? what are some issues with the property that I should be aware of? what are the council rights? what are the body corporate rights, you can start asking the questions and the more you do this the more questions you come to ask then the more confident you’ll be to actually ask the right questions which is what we want to do, the essential guide to buying your first property I actually have a full list of questions and things you should look for when you do an open house and looking at the property so you can check that out if you’ve got your essential guide to buying your first property, if you haven’t done that you should get it right now onproperty.com /buy you can look at that right there and get access to those check boxs, but really this is an activity in becoming confident in making offers and confident around real estate agents so I hope that today has been very useful for you obviously it’s something outside the norm, something that you’re probably not gonna hear anywhere else very few people are going to tell you, hey go out and make an offer on a property that you’re not going to buy, however I do think you shoud try it I do think you should be respectfull so obviously don’t make an offer a thousend times to the same real state agent, don’t piss people off, just one here and there get a little bit of practice and have fun with that, so that ends today’s episode, so until tomorrow remeber to stay positive!