As a real estate investor in Fall River, you’re likely looking for the next budget – friendly 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. If you have your sights set on a home that appears to be overpriced, it does not necessarily mean that you will be unable to acquire it. Although making an offer on an overpriced property will likely be difficult, it is still possible to do so using a few effective 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. It is best to locate comparable properties that have recently sold in the area in order to ascertain a property’s fair market value. Checking how long the property has been listed is another smart move. It’s safe to say that a property is overpriced when it has been on the market for a while or is listed higher than comparable recent sales.
As you research, compile all the data you find 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
In addition to submitting a bid for an overpriced property, if possible you should also speak with the seller. There are many factors that can contribute to an overpriced listing, from the seller simply not knowing how to value their home to using an unqualified or opportunistic seller’s agent. It is also possible that the seller’s motivation is not solely monetary. You might be able to learn the seller’s motivation for listing their home by asking a few specific questions. It may be possible for you 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
When making a lowball offer on a home that is overpriced, you must provide the seller with a compelling argument. To make your request stand out, one tactic you can employ is to present rewards or alluring conditions. A flexible closing date as well as your letter of mortgage pre-approval may be included. As an additional incentive, you might provide a sizable earnest money deposit or fewer contingencies.
Consider writing a letter outlining how you will take care of the property or perhaps the future you see for the property if the seller isn’t financially motivated. Sometimes, hesitant sellers have a sentimental attachment to their homes, and they may be more willing to sell if they know that a Fall River property manager will provide excellent care of it. It may be easier for them to let go if they can envision a nice family or young professional living there. These elements could make your offer stand out from the competition if it is one of several.
Hire an Experienced Buyer’s Agent
To significantly improve your odds of negotiating a price reduction with an overpriced seller, you must employ an experienced real estate agent. You will need somebody to aid you in negotiating with the seller and to advise you when to walk away. Even if you’ve done everything you can to make your offer appealing, sellers of overpriced homes are unlikely to accept the first one you submit. With a skilled agent on your side, you will be better equipped to participate in multiple rounds of negotiation without the process taking up all of your time.
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 when the price is way too high, some sellers are unwilling to lower it. If, despite your best efforts and the assistance of your real estate agent, you are still unsuccessful, it is likely time to move on.
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 Fall River rental properties at once, negotiate with sellers, and complete numerous comparative market analyses. Instead of handling those duties yourself, why not hire someone to do it? At Real Property Management Success, 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 774-840-5140.
Originally published on May 5, 2021
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