You’re probably looking for your next great affordable rental property as an investor in Burlingame. However, the property you desire may not be listed at a reasonable price, or even at its fair market value. If you have your heart set on a home that appears to be overpriced, this does not necessarily mean that it is out of reach. Despite the likelihood that making an offer on an overpriced property will be difficult, it is still possible to make a successful offer by employing a few effective strategies.
Determine the Fair Market Value
Doing a comparative market analysis is one of the best places to start if you believe that a property is overpriced. Find comparable nearby properties that have recently sold in order to estimate a property’s fair market value. Additionally, it is prudent to determine how long the property has been on the market. If the property you’re considering is priced higher than comparable recent sales or has been on the market for an extended period of time, it is likely overpriced.
As you conduct research, organize the information you collect into a folder or file. If you submit an offer, having evidence to back up your estimation of the value of the property may be useful.
Talk to the Seller
Another step is talking to the seller, if you can, before placing a bid on a property that is overpriced. There are lots of reasons why a property may be overpriced, ranging from the seller not understanding how to price their home to employing an unqualified or greedy agent. The seller might not only be motivated by financial gain; that’s another possibility. You might be able to determine the seller’s motivation to sell their house and why they listed it if you make a few specific inquiries. If the seller is in a hurry or has other priorities besides obtaining a high sales price, you may have an opportunity to negotiate a lower price.
Make an Appealing Offer
When bidding on a highly-priced home, you must provide the seller with a compelling reason to consider your low offer. Offering incentives or attractive terms is one strategy you can employ to make your request stand out. A flexible closing date and your letter of pre-approval for a mortgage could be included. To entice a buyer, you might also include a sizable earnest money deposit or fewer contingencies.
Consider writing a letter outlining your plans for the property’s future or your proposed maintenance schedule if the seller isn’t financially motivated. When a seller is hesitant to sell, they may have a strong connection to their home, so If they believe a Burlingame property manager will take good care of their beloved home, they may be more likely to do so. Attempting to help them envision a nice family or young professional appreciating the home may make it easier for them to let go. If your offer is one of several, these characteristics may help yours stand out.
Hire an Experienced Buyer’s Agent
Employing an experienced real estate agent will significantly improve your chances of negotiating a price reduction with an overpriced seller. You’ll need a mediator to assist you in your discussions with the seller and to advise you when it’s time to back out. Even if you’ve done your best to make your offer appealing, sellers of overpriced homes are unlikely to accept the first one you submit. Your ability to engage in repeated back-and-forth bargaining without the process taking up all of your time will improve if you have an experienced agent on your side.
If the time comes to back out of the deal, your real estate agent will also be capable of backing your decision. Some sellers won’t change their price, even if it’s much too high. Even with your real estate agent’s assistance, if you’ve given it your all and are still having no luck, it’s probably time to move on.
You can approach any property you believe would make a wonderful rental home with more assurance if you use techniques like these. Nevertheless, it can take a lot of time to manage your Burlingame rental properties, negotiate with sellers, and complete multiple comparative market analyses at once. Why not employ someone to carry out those duties 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.
Originally published on May 5, 2021
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