As an investor in Locust Grove, you are undoubtedly always having to look for the next great bargain rental property. But occasionally, the property you desire may not be listed at a bargain price, or even at fair market value. It doesn’t automatically follow that a property you have your eye on—even one that seems to be overpriced—is unaffordable. Making an offer on a property that is overpriced will probably be difficult but 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 begin if you believe that a property you’re 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. The length of time the property has been listed is another important consideration. 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, gather all the data you have into a folder or file. If you submit an offer, having supporting documentation for your valuation of the property might be useful.
Talk to the Seller
Speaking with the seller if you can is another step in placing a bid on a property that is overpriced. 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 may be motivated by factors other than monetary gain. If you ask the seller a few specific questions, you may be able to figure out why they are selling and how motivated they are. You may have an opportunity to negotiate a lower price if the seller is pressed for time or has needs other than a high sales 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. One tactic you can employ to make your request stand out is to provide rewards or alluring terms. Include your mortgage pre-approval letter as well as a flexible closing date. You could also offer a substantial earnest money deposit or fewer variables to make the deal.
If the seller is not financially motivated, consider writing a letter describing how you intend to maintain the property or your vision for its future. Sellers who are hesitant to sell might have an emotional attachment to their homes and might be more likely to do so if they believe a Locust Grove property manager will take good care of their prized home. It might be possible to make them more willing to let go if you try to make them envision a nice family or young professional enjoying the house. If your deal is one of several, these factors may help distinguish yours from the competition.
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 will need assistance negotiating with the seller, as well as advice on when to walk away. Even if you do everything you can to make your offer appealing, sellers of overpriced homes are unlikely to accept your first offer. Having an experienced agent with you will help you be better equipped to negotiate back and forth multiple times without wasting your entire day.
When the time comes to withdraw from the transaction, your real estate agent will also be willing to support your choice. Some sellers will not negotiate their desired price, even if it is excessively high. It may be time to move on if you’ve tried your hardest and are still having no luck, even with the assistance of your real estate agent.
You can make offers with more assurance on any property you believe will make a fantastic rental home by using techniques like these. Accomplishing several comparative market analyses, making deals with sellers, and monitoring your Locust Grove rental properties at the same time can be time-consuming. Why not hire someone to handle those duties on your behalf? At Real Property Management Anchor, 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 770-506-1237.
Originally published on May 5, 2021
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