As an investor in Lombard, perhaps you’re waiting for your next bargain rental property. 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. An overpriced property, though, isn’t automatically an impossibility. There are ways to still get that bargain! Even though the property is overpriced, you can still manage to pull off a successful offer if you have a few strategies in mind.
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. Also, don’t overlook the length of time the property has been already listed. Check the market for recent sales — if the property you want is still listed higher, or if it’s been on the market for a long time, then it’s most likely overpriced.
Talk to the Seller
Try your best to talk 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’s quite possible that the seller isn’t solely interested in money. You can simply ask the seller why they put up their home on the listing. Don’t be afraid to find out why they’re wanting 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. To make the offer more inviting, include an earnest money deposit, or fewer contingencies. By doing this, you’re increasing the chance of making your offer stand out in a pool of offers.
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. An experienced agent will be able to guide you through the entire negotiation process, making sure that you are able to go through it without any hiccups. 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 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.
Strategies like these will give you more confidence when it comes to pitching offers for your next great rental house. Still, completing multiple comparative market analyses, negotiating with sellers, and maintaining your Lombard 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 DuPage Preferred, 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 630-427-2200.
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