You’re probably already on the prowl for your next bargain rental property as an investor in Burlingame. It’s quite possible, however, that the property isn’t at the price you want it to be, or that it’s not 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’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. Do not overlook a key detail: how long the property has been listed. If the property is listed higher than recent sales in the market, or that it’s been listed for a long time, then it’s likely that it’s overpriced.
Talk to the Seller
You can always discuss details 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 very well be that money isn’t all that motivates the seller. Perhaps asking the seller about the home listing will lead to more context about why they are trying to sell. 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, make sure you put in a good reason for the seller to consider your lowball offer. A strategy you can use is to offer incentives or terms that are appealing to the seller. You could include things like a flexible closing date and your mortgage pre-approval letter. Even an earnest money deposit or fewer contingencies would do the trick! 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. 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 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 all has been said and done, and you still don’t get to the terms that you want even with your real estate agent’s help, it might be time to walk away.
These are but a few strategies that can really help you come up with offers for your next best rental house. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Burlingame rental properties all at the same time can become time-consuming. Let us do all of the heavy liftings for you! At Real Property Management Mid Peninsula, 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 650-696-1800.
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