BUY WELL Once we have identified a property in a market that looks favorable for STRs, we then have to do our due diligence. Our goal is to provide multiples in value to our client through the price and terms we negotiate, the team, and the level of experience and services we provide compared to our compensation. Basically, our goal is five to 10 times the value we provide compared to our compensation. The first order of business is to research fair market value looking at recent sold comparable sales and comparing that to the asking price. We want to see the asking price is at or below fair market value. Starting with an asking price that is too high makes it difficult for our buyers to get a good deal, and it may be better to find a more reasonable or motivated seller. We do not advise our clients to engage in multiple offer situations; someone will lose because they will make an emotional decision. Instead, our initial offer is always below asking price and below market value. The goal is to find a motivated seller. To do this, you make a verbal offer to gauge their level of motivation. If the seller agrees to your lower initial offer, then you know it is worth writing up, and your client is likely to get a good deal. When writing our offers in Michigan, we include that earnest money is due after satisfactory inspection, so our clients’ money is not tied up longer than it needs to be. It is easier to move on to the next deal if it doesn’t work out. We give ourselves 10 days to have the property inspected. Often we write offers on properties we have not seen in person but have vetted carefully.
20 | think realty magazine :: september - october 2025
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