| The number of deals that you will need to analyze | | | | estate agent's job definition may not match what the |
| before you find a great deal varies on several factors | | | | seller thinks it is, but that is a topic for another day. So, |
| including: your particular real estate market, the time of | | | | if seller's who hire real estate agents to get them the |
| year, how you are finding your deals and your ability to | | | | best price are all listing in the MLS, how many great |
| sell and negotiate. | | | | deals are you going to find there? Fewer than when |
| First, let's look at your real estate market. If you are in | | | | you market to find motivated sellers yourself. |
| a hot real estate market, then houses are selling | | | | Dr. Dolf De Roos, author of "Real Estate Riches", part |
| quickly and there will be fewer motivated sellers. Deals | | | | of the Rich Dad, Poor Dad advisor series, has what he |
| will be harder to come by, but they are there. You | | | | refers to as the 100:10:3:1 rule. I have found this to be |
| may spend more on marketing to get fewer phone | | | | true in my experience and other real estate gurus |
| calls or you may look at a lot more houses for sale | | | | have similar rules. |
| trying to find motivation. | | | | What it basically says is that you need to look at 100 |
| Traditionally, it is easier to find better deals when it is | | | | houses, to find 10 worth putting offers in on to have 3 |
| harder for sellers to sell their house. In colder climates | | | | offers accepted to actually get financing and close on |
| especially this is the winter time. It is typically easiest to | | | | 1. This is what you can expect if you are looking at |
| sell houses in the spring and summer while kids are out | | | | properties in the MLS or For Sale By Owner (FSBO). |
| of school or are about to be out of school. So, you will | | | | If you are marketing to find deals, the numbers change |
| tend to find more and better deals in the slower times | | | | dramatically. In a normal market, you may need to look |
| of year. | | | | at about 10 to 15 deals to find one or two that you buy. |
| How you are actually finding your deals significantly | | | | Finally, the number of deals you need to analyze is |
| affects the number of deals that you need to analyze | | | | also significantly impacted by your salesmanship and |
| before finding a great one. If you are looking in the | | | | your ability to negotiate. You'll find far fewer deals if |
| Multiple Listing Service (MLS) at houses that are listed | | | | your only offer is full price and all cash. Learning how |
| by real estate agents whose job, according to the | | | | to negotiate a discount for cash and/or getting terms |
| seller, is to get the seller the highest possible price on | | | | when buying will make non-deals, potentially deals. |
| their house as quickly as possible. As an aside, the real | | | | |