As an investor in Charlestown, your next great bargain rental property is around the corner. Nonetheless, that doesn’t always mean that the property you want will be listed at the price you want, or even at fair market value. And even if the property seems overpriced, don’t let that worry you too much. There are a few strategies that make it possible to successfully make an offer on an overpriced property.
Check the Fair Market Value
If you’ve found the property you like to be a bit overpriced, your next best step is to do a comparative market analysis on it. 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. If you find out that the property is still listed higher than recent sales, or that it’s been on the market for a long time, it’s probably overpriced.
Talk to the Seller
If you can, touch base with 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. It could also be that the seller isn’t motivated by just money. Perhaps asking the seller about the home listing will lead to more context about why they are trying to sell. Perhaps the priority isn’t to get a high sales price, but to let go of the property as soon as possible. If so, this can lead to a negotiation of the price in a downwards fashion.
Make an Appealing Offer
When bidding on an overpriced home, you can lowball, but make sure you give the seller a reason to consider the offer. One strategy you can use is to offer incentives or to draft terms that are alluring for any 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. Do this, and you will most certainly get a bigger chance of having your offer noticed 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. This person will serve as a guide when you negotiate with the seller. It’s quite common for sellers of overpriced homes to overlook the first offer that they get, even if the offer is quite 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 support you and your decision, 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 even with the help of the real estate agent you still can’t move forward with the deal, maybe it’s time to let it go.
It’s strategies like these that can really help you when making offers on your next great rental house. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Charlestown rental properties all at the same time can become time-consuming. You don’t have to do this alone. Let us do it for you! At Real Property Management Commonwealth, 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 617-299-2342.
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