As an investor in Williamsburg, you are undoubtedly always having to look for the next great bargain rental property. But occasionally, the property you desire may not be listed at a bargain price, or even at fair market value. It doesn’t necessarily follow that a property you have your eye on is out of reach just because it seems to be overpriced. Making an offer on a property that is overpriced will probably be difficult but it is still possible to do so by employing a few smart strategies.
Determine the Fair Market Value
One of the best places to start, if you believe that a property you are interested in is overpriced, is to conduct a comparative market analysis. It is best to locate comparable properties that have recently sold in the area in order to ascertain a property’s fair market value. Checking how long the property has been listed is another smart move. The property you’re interested in is probably overpriced if its listing price is higher than that of comparable recent sales or if it has been on the market for a long time.
As you conduct your research, compile all the data you discover into a folder or file. If you make an offer on a property, supporting documentation for your valuation could be useful.
Talk to the Seller
Talking to the seller if you can is another step in placing a bid on an overpriced property. There are numerous reasons why a property may be overpriced, ranging from the seller not understanding how to price their home to hiring an incompetent or greedy agent. Additionally, the seller may be motivated by factors other than monetary gain. You might be able to learn the seller’s motivation for listing their home by asking a few specific questions. You might have a chance to negotiate the price down if the seller is pressed for time or has goals other than obtaining a high sales price.
Make an Appealing Offer
You must provide the seller with a compelling argument for accepting a lowball offer when bidding on an overpriced house. To make your request stand out, one tactic you can employ is to present rewards or alluring conditions. You may also include a flexible closing date along with your letter of mortgage preapproval. You could also offer a substantial earnest money deposit or fewer variables to make the deal.
If the seller isn’t financially motivated, think about writing a letter outlining your plans for the property’s future or outlining how you will take care of it. Sometimes hesitant sellers have an emotional attachment to their homes, and they may be more likely to sell if they believe a Williamsburg property manager will take good care of it. It may be easier for them to let go if they can envision a nice family or young professional living there. These elements could make your offer stand out from the competition if it is one of several.
Hire an Experienced Buyer’s Agent
To significantly improve your odds of negotiating a price reduction with an overpriced seller, you must employ an experienced real estate agent. You will need somebody to aid you in negotiating with the seller and to advise you when to walk away. 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. Having an experienced agent with you will help you be better equipped to negotiate back and forth multiple times without wasting your entire day.
When the time comes to withdraw from the transaction, your real estate agent will also be willing to support your choice. Even if their asking price is way too high, some sellers won’t budge. It may be time to move on if you’ve tried your hardest and are still having no luck, even with the assistance of your real estate agent.
Using these methods, you can convincingly make offers on any property that you believe will make a great rental home in the future. However, it can take a lot of time to manage your Williamsburg rental properties, negotiate with sellers, and complete multiple comparative market analyses at once. Instead of handling those duties yourself, why not hire someone to do it? At Real Property Management Dominion, 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 757-395-4274.
Originally published on May 5, 2021
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.