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How to Make an Offer on An Overpriced Property

For Sale Sign in Front of Suburban HomeAs an investor in Cypress, your next great bargain rental property is around the corner. It isn’t a guarantee, though, that the property will be priced great, or even at the fair market value. If, however, the property seems to be overpriced, that doesn’t automatically mean that you won’t eventually be able to get it. It will most likely be a challenge to make an offer on an overpriced property, but it can still be successful if you try out a few strategies.

Check the Fair Market Value

A comparative market analysis is something you can do to a property that you think is overpriced. To determine a property’s fair market value, it is best to locate comparable properties recently sold in the area. Then, remember to check how long the property has been listed. Check the market for recent sales. If your property is listed higher than them, or if it’s been listed in the market for a long time, it’s overpriced.

Talk to the Seller

Try your best to talk to the seller of the overpriced property. There are many different reasons why a listed property may be overpriced, from simply not understanding how to value their home to hiring an inexperienced or greedy seller’s agent. The seller, possibly, could be interested in something other than money. A few detailed questions might lead you to the reason why the seller is selling their home. If the seller is rushing the sale, a high sales price might not be the priority. Then, you might be able to negotiate the price down.

Make an Appealing Offer

When bidding on an overpriced home, provide the seller a good reason to contemplate saying yes to a lowball offer. One strategy you can use is to offer incentives or terms that are inviting for the seller. You could include things like a flexible closing date and your mortgage pre-approval letter. To sweeten the deal, you can throw in an earnest money deposit, or fewer contingencies. If your offer is only one among many, these additions could possibly make yours stand out among the rest.

Hire an Experienced Buyer’s Agent

To significantly increase your chances of negotiating a seller down on an overpriced property, hire an experienced real estate agent. Having an agent around can be beneficial since they can help you negotiate details with the seller. Sellers of overpriced homes are less likely to go with the first offer that’s placed on the table, even if the offer is good. With an experienced agent beside you, you will be able to handle the negotiation process more smoothly. Your real estate agent will be able to guide you, especially when it’s time to walk away from the deal. Some sellers won’t budge on their desired price, even if it’s far too high. If all has been said and done, and you still don’t get to the terms that you want even with your real estate agent’s help, it might be time to walk away.

These strategies will inform your decisions for the next offer you make on your next best rental house. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Cypress rental properties all at the same time can become time-consuming. Don’t have the time? Don’t worry, we can do all of that for you. At Real Property Management Affiliates, 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 713-539-5765.

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