Negotiating and making offers are fundamental parts of real estate investing. Yet, many investors hesitate when it’s time to actually present an offer. Whether it’s fear, doubt, or perfectionism, these roadblocks prevent investors from moving forward. Real estate is a numbers game, and the only way to win is to make offers—consistently.
Making effective offers isn’t just about numbers; it’s about mindset, preparation, and overcoming fear. Let’s break down what holds investors back, how to approach negotiations, and why getting out of your comfort zone is key to closing deals.
Why Investors Struggle to Make Offers
The hesitation many investors feel when making offers usually boils down to fear—fear of rejection, fear of offending, or fear of being wrong. It’s normal to worry about upsetting the seller, but real estate is a business. Approaching negotiations with emotion rather than logic leads to missed opportunities.
One common mistake is assuming what a seller will accept. People tend to use their own lifestyle or value system as a filter for others. For example, you might think, “They’ll never accept this low offer,” based on your personal perception. But value is relative. What seems like a loss to you might be a win for someone else.
Never let your assumptions stop you from making an offer. You might be surprised how often sellers agree to numbers well below their asking price.
The Danger of Overanalyzing
Many investors spend hours calculating comps, estimating repairs, and creating spreadsheets—but never actually make an offer. Decision paralysis sets in, and they leave the property without taking the next step.
“Let me go back to the office and crunch the numbers” might feel safe, but it’s inefficient. By the time you return with a figure, the deal may be gone. Instead, aim to get a rough idea of the numbers on the spot and present an offer face-to-face.
Here’s the truth: not every offer will be perfect, and not every deal will close. Waiting for the “perfect number” or the “perfect time” often means waiting indefinitely.
Signs Your Offer Was Too High
If a seller immediately says, “Yes,” to your offer without hesitation, one thing is clear—you probably offered too much. While this might feel like a win, it’s a missed opportunity.
When a seller agrees on the spot, you’ve likely left money on the table. The goal isn’t to insult anyone with a lowball offer, but it’s always better to anchor the negotiation at a lower starting point.
If you’re consistently the highest bidder, it’s time to reevaluate how you analyze deals. A strong offer should be fair and profitable—both for you and the seller.
Overcoming the Fear of Rejection
Let’s talk about fear. Many new investors worry about being yelled at, embarrassed, or humiliated during negotiations. Sellers might react negatively to a low offer, but that’s part of the process.
Rejection is inevitable in real estate. Some sellers will be upset, and some deals will fall through. Accepting this as normal will help you move forward. The more exposure you have to rejection, the less intimidating it becomes.
Here’s an exercise: Make it your goal to hear “No” more often. Call 100 For Sale By Owner (FSBO) listings and offer 50% of the asking price. By the time you finish, you’ll be desensitized to rejection and better equipped to handle tough situations.
Treat Negotiations Like a Business
It’s easy to let emotions creep into negotiations, especially when dealing with a seller who’s in a tough spot. But as an investor, your responsibility is to make deals work—not to offer charity.
One way to set expectations is to make it clear from the start: “This is a business decision for me.” When sellers understand your position, it helps diffuse tension. Use phrases like:
- “I’d love to pay more, but this number is what works for my business.”
- “This is how I support my family, and the numbers need to make sense.”
- “I want to help, but I have to stick to what’s sustainable for me.”
Being upfront and honest doesn’t mean being heartless. It shows professionalism and helps maintain respect even if your offer is lower than the seller hoped.
Practice Builds Confidence
The best way to get better at negotiating is through repetition. Think of it like going to the gym—the more reps you do, the stronger you get.
Start with FSBO listings or estate sales. These are great opportunities to practice making offers without the pressure of a paid lead. Visit properties, talk to sellers, and throw out numbers confidently.
If you’re nervous about face-to-face negotiations, start over the phone. Offer 50% of the listing price and see how sellers respond. Most will reject you outright, but some will engage. Every conversation is a small step toward becoming a better negotiator.
With time, you’ll develop a “Teflon coating” where rejection slides off you. The goal isn’t to avoid rejection—it’s to handle it better each time.
Build Rapport Before Dropping the Number
One mistake investors make during cold calls is jumping straight to the offer. This often ruins any rapport you’ve built with the seller. If the seller is motivated, don’t risk alienating them with a lowball figure right away.
Instead, focus on gathering information in the initial conversation. Set an appointment to see the property and build trust in person. Once you’re face-to-face, it’s easier to explain your reasoning and make the offer feel less abrupt.
Stop Over-Delaying the Offer
One of the biggest pitfalls for investors is leaving without making any offer. This delays progress and signals to the seller that you may not be serious.
Even if your numbers aren’t final, present a rough estimate on the spot. Use language like:
- “Based on the current condition, I’d probably be around X.”
- “I can’t go higher than X with the repairs needed.”
Having a number ready keeps the conversation moving and shows sellers that you mean business.
Key Takeaways for Making Offers
Putting all the pieces together, here’s a quick checklist to guide your next negotiation:
- Prepare your numbers: Know your max allowable offer before stepping onto the property.
- Make it a business discussion: Set the tone early to avoid emotional negotiations.
- Expect rejection: It’s part of the process. Don’t let fear stop you.
- Start low: Anchor the conversation with a number below your top offer.
- Build resilience: Practice makes you stronger. Use FSBOs and estate sales to sharpen your skills.
Conclusion
Negotiating and making offers aren’t just skills; they’re habits you can develop through practice and persistence. The more offers you make, the more confident you’ll become.
Remember, no deal happens without an offer. Rejection isn’t the end—it’s just part of the journey to success. Take action, make the offer, and don’t let fear hold you back. Every “No” brings you closer to a “Yes.”
