As an investor in Washington Corridor, you are undoubtedly always having to look for the next great bargain rental property. However, occasionally the property you desire may not be listed at a great price, or even at fair market value, for that matter. It doesn’t necessarily follow that a property you have your eye on is out of reach just because it seems to be overpriced. Even though it will probably be difficult to make an offer on a property that is overpriced, it is still possible to do so by employing a few smart strategies.
Determine the Fair Market Value
A comparative market analysis is one of the best places to start if you believe that a property you are interested in is overpriced. Finding comparable properties that have recently sold in the neighborhood is the best way to ascertain a property’s fair market value. A good idea is to find out how long the property has been on the market. It is most likely overpriced if the property you are interested in is listed higher than comparable recent sales or has been available for a long time.
As you conduct research, organize the information you collect into a folder or file. If you submit an offer, you may want to have supporting documentation for your estimation of the value of the property.
Talk to the Seller
Talking to the seller if you can is another step in placing a bid on an overpriced property. There are numerous reasons why a property may be overpriced, ranging from the seller not understanding how to price their home to hiring an incompetent or greedy agent. Additionally, the seller might not be solely motivated by financial gain. You might be able to determine the seller’s motivation for listing their house for sale if you make a few specific inquiries. If the seller is in a hurry or has other priorities besides obtaining a high sales price, you may have an opportunity to negotiate a lower price.
Make an Appealing Offer
You must give the seller a good reason to accept a lowball offer when you are bidding on an overpriced house. Offering incentives or attractive terms is one strategy you can employ to make your request stand out. You may also include a flexible closing date along with your letter of mortgage preapproval. As an additional incentive, you might provide a sizable earnest money deposit or fewer contingencies.
Consider writing a letter outlining your plans for the property’s future or your proposed maintenance schedule if the seller isn’t financially motivated. When a seller is hesitant to sell, they may have a strong connection to their home, so If they believe a Washington Corridor property manager will take good care of their beloved home, they may be more likely to do so. To help them let go a little easier, try to show them the home will be enjoyed by a nice family or young professional. These elements could make your offer stand out from the competition if it is one of several.
Hire an Experienced Buyer’s Agent
You must work with a skilled real estate agent if you want to have a good chance of convincing a seller to reduce their asking price on a property. You’ll need a mediator to assist you in your discussions with the seller and to advise you when it’s time to back out. Even if you’ve done your best to make your offer appealing, sellers of overpriced homes are unlikely to accept the first one you submit. Having an experienced agent with you will help you be better equipped to negotiate back and forth multiple times without wasting your entire day.
In the event that you decide to back out of the deal, your real estate agent will be able to assist you in that decision. Even if their asking price is way too high, some sellers won’t budge. It is best to move on if, despite your real estate agent’s assistance, you have exhausted all possible avenues without success.
By employing techniques like these, you can make offers with greater assurance on any property you believe will make a fantastic rental. Even so, it can take a lot of time to manage all of your Washington Corridor rental properties at once, negotiate with sellers, and complete numerous comparative market analyses. Why not hire someone to handle those duties on your behalf? At Real Property Management Heritage, we offer our rental home investors professional market analyses on prospective properties and comprehensive rental home management. To learn more about what we have to offer, contact us today or give us a call at 832-701-0766.
Originally published on May 5, 2021
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.