As an investor in Brewer, the next big bargain rental property is just waiting to happen. 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. If so, don’t fret. A property that is overpriced doesn’t mean it’s automatically unattainable. 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’re convinced that a certain property is overpriced, go ahead and 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. 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
Make it an option to reach out 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. It could very well be that money isn’t all that motivates the seller. 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, pitch your seller a good enough reason to entertain a lowball offer. One strategy you can use is to offer incentives or interesting terms to make the seller think about your offer. You could include things like a flexible closing date and your mortgage pre-approval letter. To add more to the offer, you can even think about including an earnest money deposit or fewer contingencies. Doing this might even boost the chances of having your offer stand out from 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. It’s quite likely that these sellers of overpriced homes will not immediately go with the first offer they get, regardless of how good the offer. Having an experienced agent with you will make for better negotiations with the seller, ensuring that no one gets ripped off. When it’s time to walk away from a deal, you can do so with confidence with the assurance of your real estate agent. Some sellers won’t budge on their desired price, even if it’s far too high. If, even with your real estate agent’s help, you still can’t move forward with a deal, then maybe it’s time you looked for something else.
Make use of these practical strategies so that you can make a good offer on the property that is your next great rental property. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Brewer 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 Acadia, 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 207-561-7482.
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