What happens after a Verbal Offer is accepted?
When you’ve spoken with an investor, provided them with all the information, they’ve seen the property, and they have provided you with a verbal offer. What happens next?
I take you through this process quickly in the video so you understand what happens and what to expect.
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
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So now you've spoken with a real estate investor and you've given them all the information they need, they've seen the property, and now they've given you a Verbal Offer. So at this point, what is the next steps in the process? Well, usually the investor, after using all of the information that you have given them, they'll craft or author, create a verbal offer, and then you have three options. You can either accept the offer as this, start moving on, you can counter or negotiate against the investor, and or the last thing is you can just reject the offer completely. So let's break these down, as the easiest one is just rejecting the offer, there's no additional steps needed after that.The next one is you can counter the offer that the investor has given, usually this doesn't work very well because investors, when they give offers, it's not just a willy nilly offer.
Usually they have some type of algorithm or some type of spreadsheet where they plug in all the factors that they received from you, and then that spits out an offer. Now that offer may have maybe a thousand or $2,000 in wiggle room, but for the most part, the offer that investors give you is pretty much the offer that they're willing to close with. You risk losing the deal when you negotiate with investors because, you have one property to sell, and so that is your main focus. But with investors, they could be talking to 20, 50, a hundred different sellers at the same time. So if at any point the counter negotiation goes outside of the acceptable buy box or the acceptable purchase price that they're willing to buy it at, they'll just close down that file and say, Hey, Mr.Seller, nice talking to you, let me know if there's anything else we can do to help you out, but unfortunately, we're not gonna be able to move forward with you at that offer.
And then they go to the next seller, and the next seller. You've got to realize that the investor's side of the world is a large volume funnel, for every one house that I buy, I usually have to call 2000 people and I usually will have to make about a hundred offers. So to do that, we need to line up a large pipeline of sellers. And then the last thing is going and accepting the verbal offer, so the next steps when it goes to accepting the verbal offer is getting a contract in place, signing the contract, both parties, and then sending that contract to the attorneys for them to review, in our state, and in a lot of States, when you accept the contract, that contract is not actually accepted because there is anywhere between a three to a 10 day attorney review period, with, for any reason the attorney can either reject the contract, except the contract, or propose modifications to the terms. So that's the next step in the process after a verbal offer has been presented.
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