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How to Make an Offer on An Overpriced Property

For Sale Sign in Front of Suburban HomeAs an investor in Charleston, you’re most likely on the hunt for your next bargain rental property. However, there are times when the property you want is not listed at a good price, or even at fair market value. If this happens, don’t worry. Just because the property seems to be overpriced doesn’t mean you’ll never be able to buy it. Yes, it could be challenging to successfully make an offer on overpriced properties, but with a few good strategies, anything is possible.

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. 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

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. The seller, possibly, could be interested in something other than money. You can try to find out why the seller is interested in selling their home. It could be that their priority isn’t necessarily to get a high sales price. If so, you can negotiate with the seller to get 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. 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. This agent will give you advice when you negotiate 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. An experienced agent will guide you through the negotiation process so that, to some extent, both parties get what they want. 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. When you’ve done all you can with your real estate agent’s help and you still can’t find a way to move forward, it’s time to move on.

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 Charleston rental properties all at the same time can become time-consuming. Why not let us do all of that work for you? At Real Property Management Charleston, 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 843-900-4061.

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