Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How do investors decide what to offer?

Investors work backward from what the property will be worth or produce after they own it, not from the seller's asking price. They start with recent comparable sales from the Saskatchewan REALTORS Association's MLS® data, then subtract their own repair estimate and a margin for the risk and time their money is tied up.

For a rental purchase, expected rent under the Residential Tenancies Act, 2006 and realistic operating costs shape the number as much as the purchase price does, since an investor is buying a cash flow, not just a building. For a resale flip, the after-repair value against comparable sales sets the ceiling, and every dollar of repair estimate comes off that ceiling.

Speed and certainty are also part of the offer, not separate from it. An investor able to waive financing and close quickly will often price that certainty into a lower number, which is exactly why comparing an investor's offer against a properly marketed listing matters before accepting one.

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Get your hand-reviewed valuation from Joel Dyck.

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