SOFT OFFER

#Softoffers

Soft Offers

#Softoffers

Soft Offers are preliminary offers given verbally on the first Lead Manager call. This is the 2nd touch call but first in the New Leads

Purpose:

  1. Anchor price low
  2. Gauge motivation
  3. Determine which property leads we send to Underwriting
  4. On the 1st Lead Manager Callback
    1. Quickly determine
    2. Either right before or during call
    3. Do NOT underwrite

How to determine the Soft Offer

  1. Soft offer is determined initially through the Instant Offer Calculator
  2. Range is given as our offer price
    1. e.g., I think we might come in around 150-200
    2. I'm not sure this would be a great fit, but we'd likely be able to offer mid to high 200's

When to use the Instant Offer Calculator

  1. When the price is under 500k
  2. When it's off market

The calculator does not work dependably on active listings or on higher end homes.

  1. Make a copy of the Instant Offer Template in Google Sheets
  2. Rename it the property address
  3. Enter the property address in the address line
  4. Enter the square footage of the property
  5. Use at least 3 data points
    1. Zillow.com Zestimate
    2. Redfin.com
    3. Realtor.com
    4. NAR RPR (good for actives)

Remember: The soft offer is an anchor used to gauge if we are in the ballpark of getting a deal done, not an offer to commit to.

AS-IS Value

The AS-IS value on the calculator determines the basic range. Use this as our anchor price.

ARV Value

The ARV Value needs to be determined by actual Comps. Use Appraisal Sheet to help determine the best comp.

Comparables

A home's value is determined by one thing: What a buyer is willing to pay. Comps are defined as:

  • Similar style home
  • Similar area (under 1 mile)
  • Similar size (+/- 200sqft)
  • Sold recently (last 6 months or less, preferred)
  • Similar condition

Nate's Calculator

Use Nate's Calculator when ARV is decided. This helps be more accurate with exit strategies and rehab amounts.

How does this apply to the Soft Offer

The ARV method, or Nate's Calculator can give us a better representation of Soft Offer ranges. We still have to anchor price in the sales call. The soft offer is something we need to be able to do quickly. We are not underwriting. If we take too long, we are overthinking or underwriting.

LOI

#loi
LOI