When making an offer on a real estate investment, are you confident with your offer? When evaluating any real estate deal, one of the critical components of a successful transaction is getting the absolute best price you can get. Everything else fallsreal estate offers for greater profit from there. Yes, the costs to rehabilitate and the time it takes to market the property are important factors, but everything from cash flow to net profit benefits from a lower acquisition cost.

So how do you know you’re making the right offer? You never really know the answer to that question. Say that a property is listed at $300,000 and the seller accepted $292,000. Do you ever get the feeling that you could have gotten a better deal if you lowballed a bit more? Or maybe you decided to present a contract on that same deal for $250,000. The seller not only immediately declines your offer but doesn’t even want a counter from you. Should you have offered more?

That’s a psychological issue that must be overcome with time. There’s not any way for you to know the absolute lowest price the seller is willing to accept. That would almost take all the fun out of it, right? Well, maybe not exactly but hopefully you get the point. It’s a guessing game but you have to go in with your best offer. You’re not playing with monopoly money here; it’s the real deal.

The right offer is both a combination of experience and knowing the person on the other side of the transaction. What’ the motivation of the seller? Someone who’s content to sit and wait an entire year for the highest price or someone that needs to sell before the bank comes knocking?

When making your offer, feel confident. Do your research and have documentation that backs up why you think the offer makes sense for both sides. Information is key at this stage but don’t be afraid while trying to get the lowest price you can. In the long run, you’ll be glad you stuck to your guns.