It doesn't stack up! How many times have you heard that phrase when it comes to doing property deals? I hear it all the time from investors when I ask them about opportunities they are pursuing.
In reality they should qualify it by saying it doesn't stack up at the price the vendor is asking. Every opportunity stacks up, as I've said before every deal is a great deal…at a certain price. It's your job to establish what that price is which works for you. So every opportunity you look at is a deal at a certain price. So why not work out at what price it is and offer that price, better still why not drop it a further 10% and make that your opening bid?
It is a given that the more offers you make the more deals you will do. Too many investors are put off deals by the asking price stating "it doesn't stack up" when in reality sometimes it's vendors trying it on at silly prices. Ignore the price. Establish what it is worth to you and submit your offer.
When you assess a deal, whether it be for investment or development, it can take up considerable time particularly if it is a large development or refurbishment deal - apart from the comparable sale figures you need to ascertain an accurate build cost, confirm all the planning documents and their conditions, arrange surveys, potentially instruct an architect to sketch a scheme if there is no planning in place all of which takes a lot of time, effort and sometimes expense. So after all that hard work, why come to the conclusion that it doesn't stack up? Why not offer the price it stacks up at for you?