As an investor in Livingston, your next great bargain rental property is around the corner. It isn’t a guarantee, though, that the property will be priced great, or even at the fair market value. An overpriced property, though, isn’t automatically an impossibility. There are ways to still get that bargain! It might be a bit difficult to make a successful offer on an overpriced property, but it’s definitely not impossible with a few strategies in place.
Check the Fair Market Value
Do you think that the property you want is a bit overpriced? The best thing for you to do 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. 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
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. You can try to find out why the seller is interested in selling their home. 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, pitch your seller a good enough reason to entertain a lowball 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 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. Having an agent around can be beneficial since they can help you negotiate details with the seller. It’s not unusual for sellers of overpriced homes to brush off the first offer that they get, despite how good the offer actually is. The experience that an agent brings to the negotiation table will be very useful for you because it serves to protect you from getting the short end of the stick. 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 Livingston rental properties all at the same time can become time-consuming. Don’t have the time? Don’t worry, we can do all of that for you. At Real Property Management Bozeman, 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 406-586-2226.
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