Latest / Military Real Estate Rookie Show / Stop Trying To “Win” The Negotiation

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Stop Trying To “Win” The Negotiation · Military Real Estate Rookie Show

• 0:00
  SPEAKER_00: Hello, welcome to the Military Real Estate Rookie Show.
• 0:03
  SPEAKER_00: I'm your girl, Rena.
• 0:05
  SPEAKER_00: Today's topic is about when lowball offers can put your buyers at risk.
• 0:10
  SPEAKER_00: Yes.
• 0:12
  SPEAKER_00: So I want to talk about the subject because I experienced this as a realtor for my client who is a buyer.
• 0:20
  SPEAKER_00: And I wanted to see if you guys have the same feeling of could you be at risk with, you know, purchasing a home and you reducing your low-ball offers.
• 0:31
  SPEAKER_00: So this is the show we talk about real estate, home ownership, investing, building wealth, and creating opportunities through real estate, especially for our military community, veterans, first-time home buyers, and anyone who wants to understand how real estate works.
• 0:48
  SPEAKER_00: If you're listening for the first time, welcome.
• 0:50
  SPEAKER_00: And if you've been with me for a while, welcome back.
• 0:53
  SPEAKER_00: I appreciate you spending part of your day or on your run or even driving to work or even just listening and sitting and having a cup of coffee.
• 1:04
  SPEAKER_00: Today we're going to talk about what I think every buyer should know and could it put your purchase at risk?
• 1:12
  SPEAKER_00: And we're talking about something that sounds very simple.
• 1:16
  SPEAKER_00: How low can I get the seller to go?
• 1:19
  SPEAKER_00: Now I completely understand that question because I've dealt with this with my buyers.
• 1:24
  SPEAKER_00: And I tried to understand that you you may be at risk for not purchasing this home because the seller most likely won't take your offer serious.
• 1:33
  SPEAKER_00: Because of course they're trying to earn a profit as well.
• 1:37
  SPEAKER_00: So you want to protect your money.
• 1:40
  SPEAKER_00: And when you're buying a home, you want a good deal.
• 1:42
  SPEAKER_00: I get it.
• 1:43
  SPEAKER_00: You don't want to pay more than you have to.
• 1:47
  SPEAKER_00: And let's be honest, who doesn't want to feel like they negotiate a great deal?
• 1:52
  SPEAKER_00: And that's what I told one of my buyers.
• 1:55
  SPEAKER_00: But there's something I want the buyers to understand.
• 1:59
  SPEAKER_00: Getting the lowest possible price and getting the best possible deal are not always the same.
• 2:07
  SPEAKER_00: And I know, I know this because I personally experienced this.
• 2:12
  SPEAKER_00: And I'll experience it as well as now is with my client.
• 2:16
  SPEAKER_00: So today I'm going to tell you a story, explaining what happened, and talk about why.
• 2:21
  SPEAKER_00: Submitting extremely low offers over and over again can actually put you at risk as a buyer.
• 2:29
  SPEAKER_00: And before we get started, I want to remind you: this show is about education.
• 2:35
  SPEAKER_00: I'm not here to tell you that you should never submit a low offer or any offer of that point because my duty is to support you and what you want to do.
• 2:47
  SPEAKER_00: But my also duty is to educate you.
• 2:51
  SPEAKER_00: And sometimes a below list price offer is exactly the right strategy.
• 2:56
  SPEAKER_00: The key is understanding why you're making the low offer and whether the numbers support it.
• 3:04
  SPEAKER_00: So let's get into it.
• 3:06
  SPEAKER_00: And remember, this is educational.
• 3:09
  SPEAKER_00: This is my experience, and it is different from other people's experience, but I wanted to share this education from you.
• 3:17
  SPEAKER_00: So I wanted to share a real experience from my time working with my client.
• 3:24
  SPEAKER_00: For privacy, I'm not going to give you a client's name or identify any details, but I just wanted to share my story because as realtors and real estate agents and brokers, we all support our buyers and our sellers.
• 3:38
  SPEAKER_00: That's our obligations.
• 3:39
  SPEAKER_00: We also have authority to educate them as well.
• 3:44
  SPEAKER_00: But the situation is something that I think that many buyers can relate to.
• 3:49
  SPEAKER_00: I had a client who was looking at properties and wanted to make offers.
• 3:54
  SPEAKER_00: The client wanted to negotiate.
• 3:56
  SPEAKER_00: And there is absolutely nothing wrong with negotiating.
• 3:59
  SPEAKER_00: That's a part of real estate.
• 4:01
  SPEAKER_00: But the offers this client wanted to submit was very low compared to what the market and what the seller wanted to price it at.
• 4:12
  SPEAKER_00: So as we went on to write up the contract and submit the offer, there was like crickets.
• 4:18
  SPEAKER_00: No one engaged.
• 4:20
  SPEAKER_00: So after that, this happened more than once.
• 4:25
  SPEAKER_00: And we look at the property, we will discuss the property, we will look at the price, and nothing happened.
• 4:35
  SPEAKER_00: No one called.
• 4:54
  SPEAKER_00: Now, as real estate professionals, my responsibility is simply to say, okay, whatever you want.
• 4:59
  SPEAKER_00: My responsibility is also to educate my clients.
• 5:04
  SPEAKER_00: I need to help my client understand that what numbers are telling you is telling us the right way.
• 5:12
  SPEAKER_00: And if you are not serious about submitting a very, how can I say a balanced offer, then the seller clients is not going to entertain it.
• 5:24
  SPEAKER_00: I need to help the client to understand the potential consequences of particular strategy.
• 5:29
  SPEAKER_00: And ultimately, the client makes the decision.
• 5:32
  SPEAKER_00: But that's why having an agent is valuable.
• 5:35
  SPEAKER_00: You're not just hiring someone to put an offer on a piece of paper.
• 5:39
  SPEAKER_00: You're hiring someone who should be helping you understand the transaction.
• 5:43
  SPEAKER_00: And that's an important decision.
• 5:47
  SPEAKER_00: Submitting lowball offers puts you in a situation where the seller probably won't even undertain it.
• 5:55
  SPEAKER_00: So let's define what we're talking about.
• 5:58
  SPEAKER_00: A lowball offer is generally an offer that is substantially below the asking price, and more importantly, maybe significantly below what comps' market data support.
• 6:08
  SPEAKER_00: And here's where I want to make an important distinction.
• 6:11
  SPEAKER_00: A below asking offer is not automatically a lowball offer.
• 6:15
  SPEAKER_00: Let's say a home is listed for$300,000.
• 6:18
  SPEAKER_00: Maybe the comps are selling around$285.
• 6:21
  SPEAKER_00: And maybe the home has been sitting on the market for 60 days.
• 6:25
  SPEAKER_00: Maybe it needs repairs.
• 6:27
  SPEAKER_00: Maybe the seller is motivated.
• 6:29
  SPEAKER_00: In that situation, the offer below 300 may be completely reasonable.
• 6:33
  SPEAKER_00: That's negotiation.
• 6:35
  SPEAKER_00: But now this looks like the home that's listed at$300,000 compared to homes are selling for$295 and$305.
• 6:43
  SPEAKER_00: The home is in good condition.
• 6:45
  SPEAKER_00: There are multiple interested buyers, and someone wants to offer$200,000.
• 6:50
  SPEAKER_00: That's a completely different conversation.
• 6:54
  SPEAKER_00: At that point, the buyer needs to understand what is supporting the offer.
• 6:59
  SPEAKER_00: Because if the answer is simply, I want to see if they take it, you may be taking a bigger risk than you realize.
• 7:07
  SPEAKER_00: These are some important key notes that you need to explain to the buyer.
• 7:12
  SPEAKER_00: You know, because you could end up just losing that property if you don't submit the right and appropriate offer.
• 7:20
  SPEAKER_00: Your first risk is very simple.
• 7:22
  SPEAKER_00: You could lose this property.
• 7:23
  SPEAKER_00: Let's say you find your dream home and you love the neighborhood.
• 7:27
  SPEAKER_00: I mean, it's got the great school systems, it checks all your blocks.
• 7:31
  SPEAKER_00: You love a floor plan, you love location, you can't afford it.
• 7:36
  SPEAKER_00: You know, it goes good with your commute to work.
• 7:40
  SPEAKER_00: You already start imagining where your furniture is going.
• 7:44
  SPEAKER_00: Then you submit an extremely low offer.
• 7:46
  SPEAKER_00: And the seller doesn't counter, they don't even say anything, they don't reach back to you, they don't even negotiate.
• 7:55
  SPEAKER_00: They simply reject it.
• 7:57
  SPEAKER_00: And then another buyer comes along with an offer that is reasonably closer to the market and they entertain it.
• 8:05
  SPEAKER_00: That buyer gets the house.
• 8:07
  SPEAKER_00: Now you have to start over because you offered extremely low offer, which is sometimes can be an insulting.
• 8:18
  SPEAKER_00: You have to find another property, you have to schedule another showing, you have to review another inspection, you have to go through the negotiation process all over again.
• 8:28
  SPEAKER_00: And depending on the market, you can end up paying more for the next property.
• 8:33
  SPEAKER_00: So ask yourself was the money you were trying to save actually worth losing that property for a few pennies on a dollar?
• 8:42
  SPEAKER_00: That's a question every buyer needs to consider to consider.
• 8:47
  SPEAKER_00: Because you love that property, but you put it at risk because you offered or insulted the seller about that extremely low offer.
• 8:57
  SPEAKER_00: The second risk is losing your negotiation power.
• 9:00
  SPEAKER_00: Negotiation is about more than price, it's about credibility.
• 9:04
  SPEAKER_00: When a seller receives an offer, they evaluate the entire package.
• 9:09
  SPEAKER_00: They look at the price, they look at the financing, they look at the closing timeline, they look at the contingencies, they look at the earnest money, they look at everything on a contract.
• 9:21
  SPEAKER_00: They even look at how much is the inspection time, whether it's seven days or five days or five days or seven days.
• 9:28
  SPEAKER_00: They look at whether this they believe that this buyer is very serious.
• 9:31
  SPEAKER_00: If you submit an offer that is dramatically below market without a reasonable explanation, the seller may decide that you are not serious enough for even for them to understand to respond.
• 9:42
  SPEAKER_00: And once that happens, you may have a difficult time getting them to engage you.
• 9:47
  SPEAKER_00: This is why your first offer matters.
• 9:50
  SPEAKER_00: You want your offer to communicate that you are a serious buyer.
• 9:55
  SPEAKER_00: I'm serious, I'm phone, and I'm ready to negotiate.
• 10:00
  SPEAKER_00: You don't necessarily want the seller to think this is a buyer that is wasting my time.
• 10:08
  SPEAKER_00: Because once you do that, they're not gonna respond, they're not gonna say anything.
• 10:13
  SPEAKER_00: The agent, the real estate agent is not gonna respond.
• 10:16
  SPEAKER_00: And another problem with focusing too heavily on price is that buyers sometimes forget about the rest of the transaction.
• 10:23
  SPEAKER_00: Let's say you negotiate a home buyer for$10,000.
• 10:27
  SPEAKER_00: You feel like you won, but then you discover that the property needs$25,000 in repairs, or insurance is significantly higher than expected, or the property tax are higher than you anticipated, or the property doesn't cash flow the way you intended to be as a purchasing as an investment.
• 10:46
  SPEAKER_00: Or are you looking, are you overlooking other terms that could have been negotiated?
• 10:50
  SPEAKER_00: The lowest purchase price doesn't automatically mean that this is the best financial decision.
• 10:56
  SPEAKER_00: You need to look at the entire deal.
• 10:58
  SPEAKER_00: Look at the entire deal before you go out and put a low ball offer on a property.
• 11:05
  SPEAKER_00: And this brings me back to my client.
• 11:08
  SPEAKER_00: I remember having those conversations about the offers.
• 11:11
  SPEAKER_00: The client wanted to go extremely low, and I understood where the client was coming from.
• 11:17
  SPEAKER_00: The client wanted to get the best possible deal.
• 11:20
  SPEAKER_00: There was nothing wrong with that goal.
• 11:22
  SPEAKER_00: But my concern was the strategy because if you consistently submit offers that were so far below what the market supported, and we were potentially creating a necessary obstacle and more work for me.
• 11:35
  SPEAKER_00: The client could have missed out on a property, and the seller could have refused to negotiate.
• 11:40
  SPEAKER_00: And this is going on time and time again.
• 11:43
  SPEAKER_00: The client could have spent more time searching, and ultimately, the client could have walked away without understanding why certain offers weren't getting traction.
• 11:53
  SPEAKER_00: And that's when I realized something, and I think it's important for buyers to understand.
• 11:58
  SPEAKER_00: Sometimes the biggest value your real estate agent provides is telling you something you don't want to hear.
• 12:04
  SPEAKER_00: And that's when I come in.
• 12:06
  SPEAKER_00: A good agent shouldn't just tell you what you want to hear, they should tell you what you need to know.
• 12:14
  SPEAKER_00: And this is crucial to the real estate transaction.
• 12:18
  SPEAKER_00: Your agent is not your enemy.
• 12:20
  SPEAKER_00: And I want to talk about this because I've seen buyers become suspicious when their agent doesn't recommend extremely low offers.
• 12:28
  SPEAKER_00: They may think my agent just wants the commission, or my agent wants me to spend more money.
• 12:35
  SPEAKER_00: My agent is working for the seller.
• 12:37
  SPEAKER_00: Now, obviously, buyers should always understand agency relationship and know who their agent represents.
• 12:45
  SPEAKER_00: But don't automatically assume that an agent recommended a stronger offer means that the agent is trying to get more money or get you to spend more money.
• 12:54
  SPEAKER_00: That is not the case.
• 12:56
  SPEAKER_00: Your agent may be looking at the same market data you looking at and saying, based on the comps, the comparable sales, this offer may not be competitive.
• 13:07
  SPEAKER_00: That's not necessarily your agent trying to spend money.
• 13:11
  SPEAKER_00: That's maybe your agent trying to help you establish a common goal or accomplish your goal.
• 13:17
  SPEAKER_00: And remember, the goal is not simply to submit an offer, the goal is to successfully negotiate a transaction that makes financial sense.
• 13:29
  SPEAKER_00: You have to understand that because so what should you actually look at before deciding what to offer?
• 13:37
  SPEAKER_00: The number one key to that is look at the comparable sales.
• 13:42
  SPEAKER_00: What are the similarities actually selling for?
• 13:46
  SPEAKER_00: Not what somebody on social media says home should be selling for, not what your friend thinks the house is worth down the street, not what your whole the seller will sell.
• 13:59
  SPEAKER_00: Look at the market data.
• 14:01
  SPEAKER_00: Your agent should be explaining that to you.
• 14:04
  SPEAKER_00: Property condition.
• 14:07
  SPEAKER_00: Does the property need repairs?
• 14:10
  SPEAKER_00: Are there any major systems that are aging?
• 14:13
  SPEAKER_00: What does the inspection tell you?
• 14:15
  SPEAKER_00: And number three is days on the market.
• 14:18
  SPEAKER_00: How long has it been on the market?
• 14:20
  SPEAKER_00: You know, have they dropped the price before you start looking at this property?
• 14:24
  SPEAKER_00: How long has the property been listed?
• 14:27
  SPEAKER_00: Has the price been reduced over and over again?
• 14:30
  SPEAKER_00: Like I said, has it been sitting there for months?
• 14:34
  SPEAKER_00: That information can influence negotiation strategy.
• 14:39
  SPEAKER_00: And also the seller negotiate the circumstances for the seller.
• 14:44
  SPEAKER_00: It may be simply they're moving on.
• 14:46
  SPEAKER_00: They found a new job in another location, you know, all the things.
• 14:50
  SPEAKER_00: You may not always know the seller's motivation, but when information is available, it matters.
• 14:55
  SPEAKER_00: Your own financial position, what you can comfortably afford, matters.
• 15:00
  SPEAKER_00: What will your payment look like?
• 15:02
  SPEAKER_00: What happens if taxes insurance change?
• 15:05
  SPEAKER_00: What will you have left after closing?
• 15:09
  SPEAKER_00: Your overall goal is about you and what you want.
• 15:15
  SPEAKER_00: It's a lot of things before presenting that low offer.
• 15:20
  SPEAKER_00: Are you buying your primary residence?
• 15:22
  SPEAKER_00: Is this an investment property?
• 15:24
  SPEAKER_00: Are you planning to rent it?
• 15:26
  SPEAKER_00: Are you planning to house hack?
• 15:29
  SPEAKER_00: Are you looking for appreciation?
• 15:32
  SPEAKER_00: Your strategy should match your goal.
• 15:35
  SPEAKER_00: These are some key points that you guys need to realize when you're buying a home instead of just sending a lowball offer and pretty much wasting the seller's time.
• 15:46
  SPEAKER_00: And for my VA buyers, my veterans, my retirees, I want to talk specifically to you.
• 15:55
  SPEAKER_00: If you're using a VA loan, listen closely.
• 15:58
  SPEAKER_00: Your loan is very powerful.
• 16:00
  SPEAKER_00: It's a powerful benefit.
• 16:02
  SPEAKER_00: But a VA loan doesn't mean you should approach every property with the same strategy.
• 16:07
  SPEAKER_00: You still need to understand the market.
• 16:10
  SPEAKER_00: You need to understand the property condition.
• 16:13
  SPEAKER_00: You need to understand the financing.
• 16:16
  SPEAKER_00: You need to understand where the terms of the transaction may be.
• 16:22
  SPEAKER_00: Now, let's someone tells you you're using a VA loan, so just offer way below asking price.
• 16:29
  SPEAKER_00: That strategy is not going to work.
• 16:31
  SPEAKER_00: That's a slogan.
• 16:33
  SPEAKER_00: And real estate requires more than a slogan.
• 16:35
  SPEAKER_00: It requires numbers, research, preparation, and it requires understanding your specific transaction needs.
• 16:44
  SPEAKER_00: These are key components when you are a VA buyer.
• 16:49
  SPEAKER_00: Do not just look at that list price and say, hey, that's the price that they want, and that's the price that I'm going to give them.
• 16:58
  SPEAKER_00: Now, let's talk about the difference between negotiating and lowballing.
• 17:03
  SPEAKER_00: Negotiation sounds like, based on the comps or the comparable properties, the condition of the home and the current market will like to offer$285,000 instead of$300,000.
• 17:17
  SPEAKER_00: That's a conversation.
• 17:18
  SPEAKER_00: Lowballing sounds like they want$300,000.
• 17:22
  SPEAKER_00: Let's just offer them$200,000 and see what happens.
• 17:25
  SPEAKER_00: Now, could the seller sell$200,000?
• 17:27
  SPEAKER_00: Sure.
• 17:28
  SPEAKER_00: Anything is possible.
• 17:30
  SPEAKER_00: But should you build your entire home buying strategy around that possibility?
• 17:37
  SPEAKER_00: Probably not.
• 17:39
  SPEAKER_00: You offer should have a reason behind it.
• 17:42
  SPEAKER_00: And here's a phrase I want you all to remember.
• 17:45
  SPEAKER_00: Make the numbers make sense.
• 17:48
  SPEAKER_00: The numbers need to make sense.
• 17:51
  SPEAKER_00: Remember what I told you, your overall goal, if you're comfortable with those numbers.
• 17:57
  SPEAKER_00: And with that, what if the seller say no?
• 18:01
  SPEAKER_00: Now, this is another thing buyers need to understand is that rejection isn't always a bad thing.
• 18:07
  SPEAKER_00: Sometimes you make an offer and the seller says no.
• 18:10
  SPEAKER_00: That's okay.
• 18:11
  SPEAKER_00: You learn something.
• 18:12
  SPEAKER_00: Maybe the seller isn't motivated.
• 18:14
  SPEAKER_00: Maybe the seller won't negotiate.
• 18:16
  SPEAKER_00: Maybe the property isn't right property for you.
• 18:20
  SPEAKER_00: That's okay.
• 18:21
  SPEAKER_00: But there's a difference between making a reasonable offer and delivering making an offer so low that you may not even get a chance to get involved in the negotiation.
• 18:32
  SPEAKER_00: Never get a serious conversation started.
• 18:35
  SPEAKER_00: Your goal should be creating opportunity for negotiation.
• 18:38
  SPEAKER_00: That's why the low ball offers may not even give you a chance.
• 18:43
  SPEAKER_00: And this falls into another segment.
• 18:47
  SPEAKER_00: Don't fall in love with the house.
• 18:50
  SPEAKER_00: This is very true.
• 18:51
  SPEAKER_00: Don't fall in love with the house because you negotiate a deal.
• 18:55
  SPEAKER_00: I know that's hard.
• 18:57
  SPEAKER_00: You walked into the house, you can see yourself living there, your picture, your family, your kids, your holiday, your future, your furniture, all the things.
• 19:05
  SPEAKER_00: This is my heart.
• 19:06
  SPEAKER_00: This is my house.
• 19:07
  SPEAKER_00: This is not your house yet.
• 19:10
  SPEAKER_00: So until that contract is signed and everything is closed, that is your house.
• 19:15
  SPEAKER_00: And when you emotionally attach yourself to the property, that's when the mistakes happen.
• 19:19
  SPEAKER_00: You can make poor financial decisions.
• 19:22
  SPEAKER_00: On the other hand, if you become so focused on getting a bargain that you're willing to lose every property, that's also a problem.
• 19:28
  SPEAKER_00: You have to find the balance.
• 19:30
  SPEAKER_00: You just can't just be running around and saying this is my house and you haven't enclosed the deal yet.
• 19:36
  SPEAKER_00: And that brings me to another thing.
• 19:38
  SPEAKER_00: Think like an investor.
• 19:39
  SPEAKER_00: One of the things I want to encourage my audience to do is learn to think like an investor.
• 19:43
  SPEAKER_00: Even when you're buying a primary residence, what I'm actually buying, what I does the market say it's worth, what will the property cost me?
• 19:54
  SPEAKER_00: What risk am I taking?
• 19:56
  SPEAKER_00: What is my exit strategy?
• 19:59
  SPEAKER_00: All those things.
• 20:00
  SPEAKER_00: How does the purchase fit into my long-term financial plan?
• 20:04
  SPEAKER_00: Because real estate isn't just about the house, it's about financial decisions behind the house.
• 20:11
  SPEAKER_00: And that's especially important when you're trying to build wealth.
• 20:16
  SPEAKER_00: You know, using real estate to build wealth is should be your ultimate goal.
• 20:21
  SPEAKER_00: So that leads me to another lesson.
• 20:24
  SPEAKER_00: The lesson I want you to remember is so that you can, you know, when you go buy a house, you'll you'll understand.
• 20:32
  SPEAKER_00: And so let's go back to my client.
• 20:34
  SPEAKER_00: The lesson wasn't never submit a low ball offer.
• 20:38
  SPEAKER_00: That would be the wrong lesson.
• 20:40
  SPEAKER_00: Okay.
• 20:41
  SPEAKER_00: The lesson is don't submit an offer simply because you want it to be low.
• 20:48
  SPEAKER_00: That's not, you can't do that.
• 20:51
  SPEAKER_00: Have a reason, have a market data, understand the property, understand your financing, understand the seller's situation when possible, and understand the potential consequences.
• 21:05
  SPEAKER_00: Because the goal isn't to win the negotiation just so you can tell everybody, hey, I got them to go way down.
• 21:13
  SPEAKER_00: And I got them to give me a bad offer, a good offer that I could, you know, slap in their face.
• 21:21
  SPEAKER_00: The goal is to make a sound real estate decision.
• 21:24
  SPEAKER_00: Sometimes when it means getting a lower price, sometimes when it means getting a favorable terms, and sometimes when it means getting a seller to pay certain costs, sometimes when it means getting repairs completed, and sometimes when it means walking away because the deal doesn't make sense, that's real estate.
• 21:44
  SPEAKER_00: That's a big decision that you have to make as a buyer.
• 21:51
  SPEAKER_00: And finally, for my buyers, so if you're getting ready to buy a home, here's what I want you to do.
• 22:00
  SPEAKER_00: Before you make an offer, sit down with your agent and ask them, what are the comps for this sale?
• 22:08
  SPEAKER_00: How does the property compare?
• 22:10
  SPEAKER_00: How long does it how long has it been on the market?
• 22:14
  SPEAKER_00: What are some of the known issues?
• 22:16
  SPEAKER_00: What would make this offer competitive?
• 22:19
  SPEAKER_00: Where do you think we have negotiating power?
• 22:22
  SPEAKER_00: What risk do you see with the strategy?
• 22:25
  SPEAKER_00: And then listen, you don't have to agree with everything your agents say, but let them give you the information.
• 22:33
  SPEAKER_00: But you should understand the reason behind the recommendation.
• 22:38
  SPEAKER_00: That's what an educated buyer does.
• 22:41
  SPEAKER_00: And that's what a professional real estate agent does for their buyer and their sellers.
• 22:47
  SPEAKER_00: And a mess is for the first-time home buyers.
• 22:51
  SPEAKER_00: If you're a first-time homebuyer and you're listening to this, I want you to know something.
• 22:57
  SPEAKER_00: You don't have to know everything.
• 23:00
  SPEAKER_00: That's okay.
• 23:01
  SPEAKER_00: Nobody starts as an expert.
• 23:03
  SPEAKER_00: That's why you build a team.
• 23:06
  SPEAKER_00: You build a team.
• 23:07
  SPEAKER_00: You have your real estate professional, you have your lender, you have your inspector, you have other professionals involved in this transaction, your title company, you know, to look up the title to make sure it's in good standing.
• 23:24
  SPEAKER_00: You know, don't be embarrassed to say, I don't understand.
• 23:28
  SPEAKER_00: Can you explain it?
• 23:29
  SPEAKER_00: That's not weakness.
• 23:31
  SPEAKER_00: That's being a smart buyer.
• 23:34
  SPEAKER_00: That is being very smart because this is who needs you right now.
• 23:39
  SPEAKER_00: You're you are in the middle of be making the biggest, one of the biggest decisions that you need to make, and that's buying a home.
• 23:47
  SPEAKER_00: So my message from my military community: you served, you sacrificed, you moved, you relocated, you dealt with deployments, PCS moves, changing duty states, and changing home markets and financial decisions that most people never hear about.
• 24:10
  SPEAKER_00: Don't rush into real estate purchase simply because someone tells you you have a VA loan, use it, you need to buy now.
• 24:18
  SPEAKER_00: No, you need a strategy that you feel comfortable with, that you okay with, because you have to sign on that dotted line.
• 24:28
  SPEAKER_00: And you'll you use your VA loan as a tool, and real estate is an investment in a financial decision.
• 24:36
  SPEAKER_00: Use your benefits wisely, learn the numbers, and ask questions.
• 24:41
  SPEAKER_00: And don't let anybody pressure you into a transaction that you don't feel comfortable with.
• 24:48
  SPEAKER_00: That doesn't make sense for your situation or your family or your investment.
• 24:53
  SPEAKER_00: You know?
• 24:54
  SPEAKER_00: So here's the big takeaway from today's episode.
• 24:58
  SPEAKER_00: A low offer isn't automatically a bad offer.
• 25:04
  SPEAKER_00: But an offer that isn't supported by the market can put you at risk.
• 25:10
  SPEAKER_00: You could lose the entire property, you can lose your negotiating leverage, you could waste time for both the buyer and the seller and the real estate agents.
• 25:23
  SPEAKER_00: You could miss opportunity that was really in your hand.
• 25:28
  SPEAKER_00: You could miss another opportunity because of the lowball offer.
• 25:33
  SPEAKER_00: And you could become so focused on the lowest price that you miss the biggest financial picture.
• 25:38
  SPEAKER_00: So don't just ask, how can I go low?
• 25:42
  SPEAKER_00: Ask what is the smartest offer for this particular property and my particular financial goals?
• 25:50
  SPEAKER_00: That is much better question than just say, How can I go low?
• 25:56
  SPEAKER_00: So, military real estate rookies, before I go, I have a favor to ask.
• 26:03
  SPEAKER_00: If you enjoyed today's episode, if you learned something new or if you know someone who's getting ready to purchase a home, please share this episode with them.
• 26:12
  SPEAKER_00: And most importantly, please take a moment to leave the Military Real Estate Rookie Show a five-star review.
• 26:20
  SPEAKER_00: Your five-star review means more than you realize to me.
• 26:24
  SPEAKER_00: It helps other military members, veterans, first-time homebuyers, and real estate investors discover the show.
• 26:31
  SPEAKER_00: It helps me continue to create educational content, and it helps me know that these conversations are valuable to you.
• 26:38
  SPEAKER_00: So if you have your phone in your hand right now, take a moment and leave that five-star review.
• 26:44
  SPEAKER_00: And if you have a question you want to answer on a future episode, I'll love to hear from you.
• 26:49
  SPEAKER_00: You can connect with me on Instagram at Renabaron Real Estate.
• 26:54
  SPEAKER_00: And again, that's R-E-N-A-B-A-R-R-O-N, R-E-A-L-E-S-T-A-T-E.
• 27:04
  SPEAKER_00: And you can email me directly, arenabaron real estate at gmail.com.
• 27:10
  SPEAKER_00: And you can also, if you're a military member, veteran, first-time homebuyer, real estate investor, or just someone who wants to learn more, reach out.
• 27:19
  SPEAKER_00: I would love to hear from you.
• 27:22
  SPEAKER_00: And remember, real estate isn't about chasing the cheapest deal.
• 27:26
  SPEAKER_00: It's about understanding the deal.
• 27:29
  SPEAKER_00: It's about understanding the numbers.
• 27:31
  SPEAKER_00: It's about understanding the risks.
• 27:34
  SPEAKER_00: And it's about making decisions that support your long-term goals.
• 27:38
  SPEAKER_00: So before you submit that next offer, don't just ask, can I get it cheaper?
• 27:43
  SPEAKER_00: Ask, does this offer make sense?
• 27:46
  SPEAKER_00: Because sometimes the best real estate moves isn't the lowest offer.
• 27:51
  SPEAKER_00: And sometimes it's the smartest offer.
• 27:54
  SPEAKER_00: You're looking for the smartest offer.
• 27:56
  SPEAKER_00: I'm Rena, your host of the Military Real Estate Rookie Show.
• 28:00
  SPEAKER_00: Thank you for spending the time with me.
• 28:02
  SPEAKER_00: If you haven't already, follow this show, leave the five star review, and share this episode with someone who needs to hear it.
• 28:10
  SPEAKER_00: And remember, educate yourself, protect your investment, build your wealth.
• 28:15
  SPEAKER_00: Until next time, this is Rena signing off.
• 28:19
  SPEAKER_00: I'll see you on the next episode of the Military Real Estate Rookie Show.